Oil & Gas
Israeli gas producers eye Egypt after natural gas act, could route gas through Jordan to sidestep Israel Electric dispute
Israeli firms developing the Leviathan gas field are trying to find a way around the financial disputes blocking their export agreement with Egypt, according to Bloomberg.
The developers are reportedly discussing ways to reroute the gas through a pipeline in neighboring Jordan, operated by Jordanian Egyptian Fajr for Natural Gas Transmission & Supply. While the detour would be more costly than the straight line through Sinai on the Arish-Ashkelon pipeline, it would bypass the issue of Egypt having to pay a USD 2 bn judgement to Israel’s state electricity company, which has held up an export agreement.
Egyptian businessmen Alaa Arafa’s Dolphinus Holdings is looking to purchase 3 bcm a year from Israel’s Delek Group Ltd. and Houston-based Noble Energy Inc., but the additional costs are creating an issue, Arafa tells Bloomberg. The deregulation of Egypt’s natural gas sector already has people on the Israeli side eying a return to one of their key markets, as development of the Leviathan is expected to cost USD 3.75 bn. Israel already exports gas to Jordan from other fields.
(Source: Enterprise.press)