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Israel, Egypt eye European market, plan pipeline project

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As Egypt and Israel collaborate to export fuel to Europe, they are planning to build an undersea natural-gas pipeline connecting the two countries.

Egypt’s energy ministry said the pipeline would link Israel’s huge Leviathan field to Egypt’s liquefied natural gas plants, adding that the two sides would work on a governmental framework for the pipeline.

The announcement comes as nations in the eastern Mediterranean ramp up investments in offshore gas fields. Egypt is seeking to become a major hub for exporting LNG to Europe, where demand is growing as governments transition from dirtier fossil fuels such as coal and oil.

The new pipeline would allow Israel to export more gas to Egypt. It can currently send 7 billion cubic meters a year through the EMG pipeline that runs to Egypt’s Sinai Peninsula.

According to Bloomberg, the latest agreement came as Oil Minister Tarek El-Molla made a rare visit to Israel for an Egyptian official. He met his counterpart, Yuval Steinitz, and Prime Minister Benjamin Netanyahu. They discussed working with other countries to convert ships to use natural gas instead of petroleum. El-Molla also travelled to the Palestinian city of Ramallah.

Also, Egypt is increasing exports from its own fields, including Zohr. The Golar Glacier, an LNG-carrying vessel, arrived at Damietta to load 60,000 tons of the super-chilled fuel, according to a cabinet statement Sunday and ship-tracking data compiled by Bloomberg.

 

Source Bloomberg
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