Israel's Ministry of National Infrastructures, Energy and Water Resources has approved the start of natural gas exports to Egypt via Jordan. This is a new export route that has been approved following the growing demand for Israeli natural gas in Egypt, which will increase gas exports to Egypt by more than 50%.
Israel's offshore natural gas reaches Jordan via a pipeline to the border near Beit Shean and from there to Aqaba and onto Egypt.
Israel currently exports 3 billion cubic meters (BCM) of gas annually to Jordan under an agreement signed in 2016 with the Jordan Electric Power Co. At present 5 BCM of gas annually is also exported from Israel to Egypt via the former EMG pipeline from Ashkelon to El Arish in Sinai and onto Egypt for domestic consumption.
In 2022, Israel is expected to export an additional 2.5-3 BCM to Egypt via this new route and the amount could rise to 4 BCM in subsequent years. The natural gas will begin flowing from Israel to Egypt via Jordan later this month, thus substantially increasing the amount of gas that Israel exports to its neighbors.
The additional gas exports will earn the Israeli government more tax revenues and royalties and generate an extra NIS 100 million annual revenue for the government owned gas transmission network Israel Natural Gas Lines.
The Ministry of National Infrastructures, Energy and Water Resources said that beyond the economic benefits, natural gas exports to the region strengthens geopolitical relations between Israel and neighboring countries, strengthens energy security of the countries in the region and leads to a cleaner economy in the Eastern Mediterranean.
Published by Globes, Israel business news - en.globes.co.il - on February 16, 2022.
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