Israel to increase natural gas exports to Egypt – sources

Israel will significantly increase the amount of natural gas it plans to export to Egypt under a landmark deal, energy companies in Israel said on Wednesday.

Partners in Israel’s Leviathan and Tamar offshore gas fields signed a deal last year to sell $15 billion worth of gas to a customer in Egypt in what Israeli officials called it the most significant deal to emerge since the neighbours made peace in 1979.

Under the amended agreement, the companies said the amount to be sold from the Leviathan field will nearly double to 60 billion cubic meters (bcm) of gas over 15 years. Exports from the nearby Tamar field will be reduced to 25.3 bcm from 32 bcm over the same period.

One source in the Israeli energy industry estimated the value of gas to be exported was now $19.5 billion — $14 billion coming from Leviathan and $5.5 billion from Tamar.

Texas-based Noble Energy, Israel’s Delek Drilling and Ratio Oil own Leviathan. Noble, Delek Drilling, Isramco and Tamar Petroleum are leading partners in the Tamar field.

Source: Reuters