After the massive $35 billion gas deal that took place between Leviathan Partners and Egypt and preparations for approval when it comes to the Nitzana pipeline in Israel, which will enable an increased export, Egypt commits $400m investment, said Asharq Business, the Saudi London-based newspaper.
It is well to be noted that Egypt happens to be a very massive gas consumer, and in spite of having prominent gas reserves that have its signature stamp, it is still struggling to meet its energy requirements. The fact is that gas from Israel happens to be quite a necessity for its economy and happens to be an alternative to even more costly liquefied natural gas – LNG. Interestingly, for Israeli gas companies, and specifically the ones that happen to control the Leviathan field, which is export-oriented, this comes as a prime business opportunity, since Egypt is indeed willing to pay higher prices for the exported gas as compared to the comparatively low price of gas that’s sold to the Israeli market. Chevron, the US energy major, happens to be the operator of Leviathan; NewMed Energy from Israel is the largest shareholder, and Ratio, the Israeli company, happens to be another partner.
The deadline for the financing offer has already passed a few times
As Egypt commits $400m investment, the Leviathan partners, as part of the Egyptian gas deal, have already gone on to commit to a significant increase in the gas production from the field and at the same time also widen the export infrastructure to Egypt. The major part of the infrastructure happens to be the Nitzana pipeline, which is going to increase the amount of gas that can get exported to Egypt by 6 BCM every year and is going to be built due to the financing by the exporters themselves. Apparently, the disputes between exporters have already been overcome, and the signing of the agreement to construct the 65-kilometer Nitzana pipeline in Israel should get the approval very soon. Gas is anticipated to flow in the pipeline by 2028.
According to Asharq Business, Egypt, which has shifted from being a net exporter to a net importer when it comes to liquefied natural gas, is quite keen on becoming a regional energy base through importing gas from countries within the region, getting it liquefied in Egypt, and thereafter exporting the liquefied gas across the world market. But this plan happens to be stalled while Egypt is turning to importing gas from Israel as well as Cyprus so as to meet domestic demand. The newspaper also adds that in 2024, Egypt went ahead and consumed 60 BCM when its production was just 47.5 BCM. With regard to this, Mostafa Madbouly, the Egyptian Prime Minister, has announced that his country is anticipated to commence the exports by 2027.
