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Plans to export Israeli gas to Egypt on schedule

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LNG Industry,

According to Reuters, plans to commence gas exports to Egypt from Israel remain on schedule, but additional steps still need to be taken before exports can begin.

Speaking to reporters at an energy conference in Abu Dhabi, Egyptian petroleum minister, Tarek El Molla, said: “Everything is agreed on ... countries (involved) have already given their blessings. There is no issue in that.

“It’s a multilateral deal, a gas deal and a pipeline deal so it is a little bit a lengthy process. That’s why it is taking a little bit of time.”

According to Reuters, the gas will be transported using the East Mediterranean Gas (EMG) subsea pipeline, after a US$15 billion export agreement was signed in 2018. The operator of the pipeline has reportedly signed an agreement to use the terminal belonging to Israel’s Europe Asia Pipeline Co. The companies reportedly said that this was one of the final hurdles before exports commence.

In addition to this, the Egyptian petroleum minister reportedly added that the Damietta LNG plant in Egypt would restart operations as planned before the end of 2019. According to Reuters, the plant has been idled for a number of years, due to a lack of gas supply amid a disagreement with Union Fenosa Gas (UFG).

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