Israeli and Egyptian energy ministers announced Wednesday the start of natural gas flow from Israel to Egypt. According to the Energy Ministry's announcement, this is an important development that will serve the economic interests of both parties. The Ministry of Energy added that this move would also allow Israel to export some of its natural gas to Europe through Egypt's LNG facilities, promoting Egypt's status as a regional gas hub.
It is also a historic landmark for Israeli gas entrepreneurs, who began contacts with Egypt after the Australian Woodside company canceled its intention to enter into a partner in the Leviathan Reservoir in 2012. Leading negotiations with Egypt's Egyptian director Dr Yossi Abu over the years led.
Energy ministers Tariq Al Mula and Yuval Steinitz will present the progress achieved during a meeting of the Middle East Gas Forum in Cairo today.
During the conference, the energy ministers of Israel, Egypt, Italy, Greece, Cyprus, Jordan and the PA are expected to approve the transformation of the forum into a regional organization.
At the same time as the ministerial meetings, the Israeli delegation, led by the Director General of the Ministry of Energy Udi Adiri, worked with delegations from Egypt, Greece, Jordan, Italy, Cyprus and the Palestinian Authority to formulate the constitution of the EMGF regional gas organization. At the end of the meeting, the ministers are expected to sign the acronym. On the constitution of the organization, this will be another significant step towards consolidating and consolidating its activities.
A month ago the natural gas from the Leviathan reservoir began to flow to the government gas transmission system and from there to all the consumers of the reservoir, including the electricity company and gas consumers in Egypt.
The development of the reservoir has been delayed for years due to public struggles dealing with various issues, including gas exports, gas taxation and the location of the reservoir's production rig. The biggest battle took place around the gas outline that regulated competition in the economy against criticism of the cross-holdings of the Delek Group and Noble Energy in Israel's two largest reservoirs, "Tamar" and "Whale."
The "Leviathan" reservoir, discovered in 2010, contains about 500 BCM and is located at the depth of Israel's economic waters, about 120 km offshore. The reservoir's production pipeline spans hundreds of kilometers, and the production is carried out from 4 production wells.
The Ministry of Energy noted that connecting the "Leviathan" reservoir gives the Israeli energy economy a much needed redundancy in the sources of natural gas, allows natural gas to be exported to neighboring countries and improves competition in the economy.
The "Leviathan" reservoir joins the "Tamar" reservoir that supplies natural gas to the economy since 2013. "This is a key stage in the implementation of the gas outline led by the energy minister, Dr. Yuval Steinitz," the ministry statement said.
Minister Steinitz visited the control room of the state gas lanes company that operates the onshore gas conduit network and welcomed the start of gas flow.