Natural gas from Israel's Tamar gas field will begin flowing to Egypt on June 30. Over the weekend, trials were held using the 90 kilometer underwater gas pipeline between Ashkelon and El Arish in the Sinai, which was part of the pipeline bought from EMG by Noble Energy Inc. (NYSE: NBL), Delek Drilling LP (TASE: DEDR.L) and their Egyptian partner East Gas, and which had been used in the past to convey gas from Egypt to Israel.
The trials currently underway will test that the pipeline meets all required standards and regulations and that there are no cracks or rust, which would make it difficult to withstand the required pressure.
If all is found to be in working order, gas will start flowing on June 30, in relatively small amounts at first. Under the agreement signed between the Tamar partners and Dolphinus, surplus gas will be exported to Egypt, although no such surpluses are expected in the heat of the summer when electricity consumption in Israel is at its highest. Only towards the end of the year when Leviathan gas starts flowing, will gas exports to Egypt begin in much higher quantities.
In early 2018, the Tamar and Leviatthan partners signed a deal with Egypt's Dolphinus corporation, a hitherto unknown consortium. Leviathan can export up to 3.5 BCM to Egypt annually for 10 years, while Tamar will sell surplus gas. Each field can sell up to 32 BCM overall at a combined price of $15 billion.
Published by Globes, Israel business news - en.globes.co.il - on June 2, 2019
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