Egypt to sign up on gas pipeline agreement with Israel’s Delek

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Egypt to sign up on gas pipeline agreement with Israel’s Delek

On Sunday, the 3rd of November 2019, Israel’s Delek Drilling Company alongside Egypt’s East Gas Company had issued a joint statement saying an accord reached a year earlier over purchasing 39 per cent of East Mediterranean Sea Line by a JV of Israel’s Delek alongside Texas-based Noble Energy at a $518 million deal involving a gas pipeline to transfer gas from Israel to Egypt would likely to be finalized over the next few days.

In point of fact, Israel’s Delek Drilling Company alongside Texas-based Noble Energy had partnered up with Egypt’s East Gas Company in a project called as EMED, aimed at transporting natgas to Egypt through a pipeline for $518 million as beforementioned.

Besides, the 90-kilometre line beneath sea-level between El Arish in Egypt and Ashkelon in Egypt, would likely to transfer roughly 7 billion-cubic feet of natural gas per year, while the pipeline capacity could be extended to 9 billion cubic feet, Sunday’s (November 3rd) joint statement said.

Meanwhile, referring to the transaction involving the gas pipeline, Delek said in a filing in the Israeli stock exchange, “When the transaction is fully converted to sellers, which is expected to happen within days, the East Gas deal is virtually closed,” while expressing an out-and-out optimism over East Gas deal, Delek Chief Executive, Yossi Abu said late on Sunday (November 3rd), “The completion of the East Gas deal marks the dawn of a new era for the Israeli energy market - with Israel becoming the regional natural gas exporter. We expect gas pipelines from Lothian to start before the end of the year. ”