Israel and Egypt have agreed to build a pipeline to connect the Leviathan natural gas field offshore Israel to liquified natural gas (LNG) terminals in northern Egypt.
In a meeting attended by Israeli Energy Minister Yuval Steinitz and Egypt Minister of Petroleum & Mineral Resources Tarek El Molla, the two countries agreed to work on ways to expand the development of east Mediterranean natural gas.
In a statement, Steinitz’s office said: “The two ministers agreed on the construction of an offshore gas pipeline from the Leviathan gas field to the liquefaction facilities in Egypt in order to increase the gas exports to Europe through the liquefaction facilities in Egypt.”
Located 130km off Israel’s coast, the Leviathan field exports gas to Jordan and Egypt and supplies the Israeli domestic market.
The gas field is operated by Noble Energy with a 39.66% stake in the field. Delek Group’s subsidiaries Delek Drilling and Avner Oil Exploration each hold a 22.67% stake, while Ratio Oil Exploration owns 15% interest in the field.
In an effort to expand the Leviathan field, the project partners have been considering options, including a floating LNG facility or a subsea pipeline. It would be connected with LNG terminals, which are either idled or run at less than their potential capacity in Egypt.
Additionally, Egypt has signed a memorandum of understanding (MoU) to develop the Gaza Marine field located approximately 30km off the Palestinian enclave’s coast with the project’s partners.
The project is planned to be developed by the Palestine Investment Fund, the sovereign fund of the Palestinian Authority, and Consolidated Contractors Company.
