Israel to Unblock Leviathan Gas Exports to Egypt

Israel to Unblock Leviathan Gas Exports to Egypt

Israel will soon submit a proposal to Noble Energy Inc. and Delek Group Ltd. in order to unblock stalled development of the Leviathan natural gas field and allow exports to Egypt and Turkey, country’s Energy Minister, Yuval Steinitz, told Bloomberg in an interview.

The proposal would be a ‘softer’ version of the government’s offer to promise the energy explorers regulatory stability for 10 years, which Israel’s highest court struck down in March, according to Steinitz.

The absence of a regulatory framework has held up the development of Leviathan, Israel’s largest gas reserve, discovered in 2010, and hindered production at the smaller Tamar field. It has also blocked export deals.

As In Cyprus informed citing the interview, although the drop in crude oil prices has cut into global spending on oil and gas projects, Israel is betting Noble and Delek will move forward with Leviathan because gas prices in Israel and elsewhere in the region remain relatively high, Steinitz concluded. He also noted, as In Cyprus informed, that “the prices they will get in Jordan, Egypt, and hopefully in Turkey — because we are very close to resuming a diplomatic relationship with Turkey — are high.”

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