Energy Minister Yuval Steinitz approved the Tamar partners’ request to export gas to Dolphinus Holdings in Egypt, after Ministry of Energy Petroleum Commissioner Yossi Wurzburger consulted with Prime Minister Benjamin Netanyahu.
The agreement, valued at NIS 5 billion, accounts for the transfer of 5 BCM to industrial clients in Egypt over three years. The natural gas from the Tamar reservoir will flow to Ashkelon on Israel Natural Gas Lines’ system and Dolphinus will be responsible for its flow through the existing pipeline - operated by EMG - as reported by the partners when the deal was signed in March.
Steinitz lauded the deal, "Approving exports to Egypt, in accordance with the government’s decision, is the first sign of energy cooperation that will develop in the coming years with regional powers, like Egypt, Jordan, Greece, and Turkey, and with European nations as well."
However, several obstacles may still delay the deal. First, the deal must be approved by the Egyptian government, which halted all talks with Israel on the import of gas after an international ruling required Egypt to pay Israel Electric Corporation compensation to the tune of $1.8 billion.
Second, the deal must be approved by the operator EMG. Finally, the pipeline must be adapted to accommodate the flow of gas not only from Egypt to Israel, but from Israel to Egypt.
Published by Globes [online], Israel business news - www.globes-online.com - on December 24, 2015
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