The Ministry of Investment of Egypt has signed two energy agreements with the US energy group Noble Energy on gas supply and on the production of oil products in partnership with the Egyptian company Dolphinus Holdings. Under the terms of the agreement, Noble Energy will deliver gas to Egypt through the 90-km-long East Mediterranean Gas (EMG) pipeline, stretching between Ashkelon (Israel) and Al-Arish (Egypt). The US International Development Finance Corporation (DFC) will provide US$430m in insurance to rehabilitate the gas pipeline and to cover gas flows to Egypt.
In February 2018, the Israeli exploration and production company Delek Drilling signed two gas supply agreements of US$7.5bn each with Dolphinus Holdings for around 64 bcm of gas export to Egypt (around 3.2 bcm/year over a 10-year period on a firm basis plus up to 3.5 bcm/year of gas from the Tamar field on an interruptible basis); gas deliveries would start in 2020 or 2021 and would stop when the 32 bcm amount is delivered. The agreements were revised in November 2019: Egypt will import 5.7 mcm/d (around 2.1 bcm/year) from the Leviathan field in the first half of 2020; volumes will be raised to 12.7 mcm/d (4.6 bcm/year) from mid-2020 to mid-2022 (start of Tamar field) and to 18.4 mcm/d (6.7 bcm/year) from mid-2022 to the end of 2034.
In November 2019, Noble Energy and its partners also established a joint venture (EMED), which will buy a 39% stake in the EMG pipeline for US$518m; the transaction is expected to close in the fourth quarter of 2019.