EMG gas pipeline faces ownership change as Delek plans LSE spin-off
Delek Drilling to transfer ownership in Israel-Egypt gas pipeline to new company as part of LSE spin-off plan: Delek Drilling, one of the main operators of Israel’s large offshore gas fields, is planning to spin off most of its assets into a new company it will IPO on the London Stock Exchange, according to a regulatory filing on the Israeli exchange cited by Reuters.
Delek will transfer some of its assets, including its partial ownership of the EMG pipeline that runs between Israel’s Ashkelon and Egypt’s Arish, to the new company.
The two fields from which Delek ships natural gas to Egypt won’t be held by the same company anymore: Delek will transfer its 45.3% share of the Israeli Leviathan gas field and 30% stake in Cyprus’ Aphrodite field to the new company, but retain its 22% stake in the Tamar field, which the Israeli government has ordered it to sell next year as part of its plan to prevent concentration in the gas market. Delek exports gas from Leviathan and Tamar to Egypt under a landmark USD 19.5 bn agreement signed with Alaa Arafa’s Dolphinus Holding in 2018.