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Israel plans to start gas exports to Egypt by November 2019

Israel expects to start gas exports to Egypt by the end of November 2019, under the terms of two US$7.5bn agreements signed in February 2018 by Delek Drilling, Noble Energy and the Egyptian company Dolphinus Holdings for around 64 bcm of gas export to Egypt.

Under the first agreement, Delek will supply around 32 bcm of gas to Dolphinus Holdings over a 10-year period (around 3.2 bcm/year) on a firm basis including a take or pay mechanism for a minimal annual quantity. Under the second agreement, Delek Drilling and Noble Energy will supply up to 3.5 bcm/year of gas from the Tamar field to Dolphinus Holdings on an interruptible basis; gas deliveries will start in 2020 or 2021 and will stop when the 32 bcm amount is delivered. Moreover, Delek Energy and Noble Energy agreed to buy stakes in the East Mediterranean Gas (EMG) gas pipeline between Ashkelon (Israel) and El Arish (Egypt), which would transport gas exports.

In January 2019, Eastern Mediterranean countries agreed to establish a forum to create a regional gas market, reduce infrastructure costs and offer competitive prices. However, Syria, Turkey (that has a maritime border issue with Cyprus) and Lebanon (that has a maritime border issue with Israel) did not take part to the forum.