New pipeline mulled as Egypt requests more Israeli gas

Gas installation near Cairo   credit: Amr Abdallah Dalsh, Reuters

If it goes ahead, the $200 million new infrastructure will be land-based.

The Egyptian demand for the purchase of more natural gas from reservoirs in Israel has led to the promotion of a new infrastructure project: construction of a new pipeline to transport gas from Israel to Egypt, Reuters reports. According to estimates by market sources and sources in the Ministry of National Infrastructures, Energy and Water Resources, the project will cost some $200 million. Assuming that construction goes ahead, the new pipeline will work in parallel with, and not instead of, the existing infrastructure via which the gas partnerships in Israel already supply gas to Egypt in ever increasing quantities. It is also reported that the new pipeline will be land based and not undersea.

The Ministry of National Infrastructures, Energy and Water Resources confirmed the report, and told "Globes": "Discussions are taking place between Israel and Egypt on possible cooperative projects in natural gas. Among other things, because of a request by Egypt to receive additional supplies of natural gas, the construction of a land-based natural gas pipeline to be owned by Israel Natural Gas Lines Ltd. Is being advanced. There is currently a statutorily approved line in the Kerem Shalom area, but because of difficulties on this route, it was decided to plan an alternative, which is being examined." It can be concluded from the ministry's statement that talks on the project have been going on for some time, and are not a recent development. According to the Reuters report, the project could be operational within two years.

A Ministry of National Infrastructures, Energy and Water Resources source asked to make it clear that in any event the cost of constructing the new infrastructure would fall wholly on the developers, and would not be financed from the public purse. "Globes" has also learned that such infrastructure could be used for exports of gas from any of the three reservoirs: Tamar and Leviathan, which are already active, and Karish, owned by Energean, which the company says will be developed commercially within a few months.

Published by Globes, Israel business news - en.globes.co.il - on October 21, 2021.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.

Gas installation near Cairo   credit: Amr Abdallah Dalsh, Reuters
Gas installation near Cairo credit: Amr Abdallah Dalsh, Reuters
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