Delek, Noble sign $15b gas deal with Egyptian co

Leviathan gas field Photo: Noble Energy
Leviathan gas field Photo: Noble Energy

The energy companies have signed binding agreements to provide 64 BCM of gas to Egypt's Dolphinus Holdings.

Delek Drilling LP (TASE: DEDR.L) and Noble Energy Inc. (NYSE: NBL) announced today that they have signed two binding agreements to export gas to Egyptian company Dolphinus Holdings Ltd. The energy companies will supply 64 billion cubic meters (BCM) of natural gas from the Tamar and Leviathan gas fields over 10 years. The gas is worth an estimated $15 billion.

The supply of the natural gas will begin when the required infrastructure is in place to convey the gas to Egypt and will continue until either 64 BCM is supplied or 2030, whichever is sooner.

The possibility is being examined of transporting the gas via the existing EMG pipeline, which previously transported gas in the opposite direction from Egypt to Israel.

Other options include exporting the gas via pipeline to Jordan and then to Egypt or via a new pipeline linking Israel to Egypt via Nitzana.

Delek Group Ltd. (TASE: DLEKG) controlling shareholder Yitzhak Tshuva said, "We have reached an important milestone in realizing the vision and the dream of all of us, as part of which Israel will become a major gas exporter to the countries of the region. The agreement will strengthen relations between Israel and its neighbors and increase the economic cooperation between them."

Delek Drilling CEO Yossi Abu said, "This is a historic day. The export deals are based on Egypt's status as a regional energy center allowing supply of gas to their domestic market and to export installations and which will allow development of the Egyptian and Israeli economies."

He added, "With the signing of the agreements for the supply of gas, the Leviathan field is nearing the capacity threshold for production according to the 1A stage in the field's development plan, while in addition protecting the volume of long term sales from Tamar is assured."

"While implementing these deals," he continued, 'We are continuing to move forward with other agreements that will form a basis for investment decisions on Leviathan's 1B stage, which will increase the production capability of the field to about 21 BCM annually."

Published by Globes [online], Israel business news - - on February 19, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Leviathan gas field Photo: Noble Energy
Leviathan gas field Photo: Noble Energy
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