Israel Signs Preliminary Natural Gas Deal With Egypt

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Offshore Leviathan natural gas drilling site.
Offshore Leviathan natural gas drilling site.Credit: 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.

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