Noble Energy, Delek Drilling and Egypt East Gas Company have purchased a 39% stake in the Eastern Mediterranean Gas Company paving the way for Israel to begin exporting natural gas to Egypt, Noble announced in a press release.
The Eastern Mediterranean Gas Company owns the subsea EMG pipeline that runs from the Israeli city of Ashkelon to El Arish on Egypt’s north coast.
The agreement will allow the consortium to export natural gas from Israel’s Tamar and Leviathan fields in the Mediterranean to Egypt’s liquefaction facilities.
The consortium will pay $518 million for the stake. Delek and Noble will provide $185 million each while Egypt East Gas will pay the remainder, according to Bloomberg.
“With these agreements, we are securing the capacity to deliver on our firm gas sales agreement with Dolphinus for Leviathan while also allowing for interruptible sales from Tamar into Egypt,” Keith Elliott, Noble Energy’s senior vice president, offshore, stated.
Egypt’s petroleum ministry spokesman, Hamdi Abd El Aziz, welcomed the news. “The ministry welcomes this new step by the private companies responsible for the commercial project,” he said in a press statement.