Israel Signs Preliminary Natural Gas Deal With Egypt

Under the deal, Leviathan gas field will supply natural gas to Egypt through Sinai underwater pipeline.

Offshore Leviathan natural gas drilling site.
Albatross

REUTERS - The partners in Israel's offshore natural gas field Leviathan said on Wednesday they signed a preliminary deal to supply gas to Egypt via an existing underwater pipeline to the Sinai peninsula.

Under the deal, Leviathan which is expected to begin production in 2019-2020 would supply Egypt's Dolphinus Holdings with up to 4 billion cubic meters of gas a year for 10 to 15 years, the partners said in a statement to the Tel Aviv Stock Exchange.

The price of gas is similar to other contracts and is linked to the price of Brent oil, they said.

Dolphinus is a firm that represents non-governmental, industrial and commercial consumers in Egypt. Leviathan is owned by a group led by Texas-based Noble Energy and Israeli conglomerate Delek Group.