- Israel and Egypt discuss new maritime pipeline.
- The new pipeline is expected to cost $ 200 million – industry sources
- Increases pipeline exports from 3 to 5 bc / year – Industrial Sources
LONDON, Oct. 21 (Xinhua) – Israel is considering a new offshore pipeline to Egypt to speed up natural gas exports to its neighbors following a recent global congestion, the Israeli Ministry of Energy said.
The pipeline, which connects the Israeli-Egyptian natural gas pipelines north of the Sinai Peninsula, is estimated at $ 200 million and could be operational in 24 months, industry sources close to the talks told Reuters.
The new sea route, coupled with plans to build a second seaport to Egypt a few years later, has provided Israel with a key center of energy in the eastern Mediterranean, which has boosted diplomatic ties with the country in recent years.
A.D. In January 2020, after Israel began producing gas fields on the shores of Tamar and Leviathan, Egypt became a major supplier of energy to natural gas. An estimated 5 billion cubic meters (BCM) of gas is supplied annually through the offshore pipeline connecting Israel and Egypt’s Sinai Peninsula.
“Israel and Egypt are discussing possible cooperation in natural gas supply. One of the options being considered is Egypt’s submarine pipeline,” the Israeli Ministry of Energy said in a statement. Reuters
He said the pipeline is owned by the Israeli national distribution company Israel Natural Gas and is being licensed by local authorities.
The Egyptian Ministry of Energy could not be reached for comment.
Gas markets in Europe and Asia are booming this year due to overcrowding and strong economic activity around the world. Israel’s 15-year supply deal with Egypt protects Egypt from inflation.
The new pipeline will increase the supply to Egypt by 3 to 5 cm per year, the sources said. They supply Egypt’s power transmission line and increase the volume of liquefied natural gas (LNG) from Egypt to Europe and Asia.
“There is no doubt that Egypt has all the qualities and conditions to make it a regional hub for regional and international gas by collecting more gas from Israel, Cyprus and its environs.”
The pipeline on the coast could be attacked by Sinai Islamist militants who have tried to target gas infrastructure in the peninsula in recent years.
Israel’s ability to expand its gas exports to its neighbors depends on the company’s ability to expand production.
Israel’s export capacity is expected to increase from 5 bcm per year to 8 bcm per year by 2023. And DEDRp.TA, a conglomerate of Delege Group (DLEKG.TA), owns 45%.
Chevron’s spokesman declined to comment.
When Energean (ENOG.L) starts production from the Karish / Tanin gas field planned for mid-2022, the result will be even greater. It also plans to start drilling five new wells in February, which will further increase production in the coming years. The company told Reuters.
“Energy will welcome any new infrastructure that connects the Eastern Mediterranean to Europe,” it said in a statement.
The plan to build a second offshore pipeline between Israel and Egypt will not affect Egypt’s plans to export LNG Edku and Damita oil to Europe and Asia, the sources said.
(This story has been modified in paragraph 2 to avoid unusual words in the character)
Reporting by Ron Busso; Edited by David Evans
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