The new pipeline will allow delivery to Union Fenosa Gas in Egypt.
While delays and question marks involving the Leviathan natural gas reservoir are multiplying, expansion of development in the Tamar reservoir is making rapid progress. Tamar has been providing all the gas for the Israeli economy since April 2013. The Tamar developers are expected to submit soon to the Ministry of National Infrastructure a development plan for laying an additional gas pipeline at a cost of $1.5 billion. The pipeline, which will have an annual capacity of 7-8 billion cubic meters, will make it possible to deliver gas to the liquefaction facility of Spanish company Union Fenosa Gas (UFG) in Damietta, Egypt.
The new pipeline will be connected on the Egyptian border to a pipeline to be built by UFG. The facility in Egypt is expected to buy 4 BCM a year, leaving the remaining gas for use in the Israeli economy. If the UFG deal goes through, Tamar will be able to supply the economy with a maximum of 16 BCM, compared with 10 BCM at present. This quantity also includes the compressors project, which will make it possible to increase the quantity of gas supplied through the current pipeline by 25%.
Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2014
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Tamar