The government of Israel has signed a permit authorising Israeli natural gas export from the Tamar and Leviathan offshore reservoirs to Egypt. Israel will supply gas to Egypt via the 90 km subsea the East Mediterranean Gas (EMG) gas pipeline between Ashkelon (Israel) and El Arish (Egypt). Gas sales to Egypt are for domestic use and re-exports in the form of LNG.
Under the terms of an agreement signed in October 2019, US comany Noble Energy and its partners will supply 63 bcm of natural gas from Israeli Leviathan to Egyptian company Dolphinus Holdings over a period of 15 years, while deliveries from Israel’s Tamar field will stand at 27 bcm until the end of 2034. Both contracts include take or pay commitments. Subject to certain regulatory approvals, the new agreement is valued at US$19.5bn. A previous deal, signed in February 2018, included the delivery of 64 bcm of natural gas to Egypt over a decade.
The Leviathan project is onwed by Delek Drilling (45.34%), Noble Energy holds (39.66%) and Ratio Oil Exploration LP (15%), while the Tamar project is owned by Isramco Negev 2 (28.75%), Noble Energy (25%), Delek Drilling LP (22%), Tamar Petroleum (16.75%), Dor Gas Exploration (4%) and Everest Infrastructures (3.5%).