Thursday 22 March 2018

Delek and Noble seeking to acquire gas pipeline to Egypt


Following Noble and Delek’s agreement to sell 64bcm of gas into Egypt via Egyptian intermediary Dolphinus Holdings, the two upstream companies have commenced discussions to acquire EMG, the business which owns the Arish-Ashkelon pipeline (otherwise known as the EMG pipeline).

This is one of the routes contemplated by Noble and Delek as part of plans to export gas into the wider East Med and Europe. The 64bcm of gas will be sourced from Tamar and Leviathan, the latter scheduled to deliver first gas at the end of 2019. Both fields are operated by Noble Energy.

Source: Delek, February 2018
The EMG pipeline used to export gas from Egypt to Israel under a deal agreed in 2008. However post the Arab Spring, the pipeline was increasingly the target of militant attacks and together with an emerging gas supply shortage, gas exports to Israel were terminated altogether. A lawsuit is continuing in the background between Egypt, Israel and EMG around the termination of gas exports.

In the meantime, it is understood that technical studies have begun to reverse the flow of the system for sending Israeli gas to Egypt.

1 comment:

  1. Very informative blog post... Delek oil and gas done a great job and it help to make Israel more powerful. Thanks

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