Egypt will buy gas from israel in a financial scope of $ 15 billion

The Delek Group signed two agreements for the export of gas to Egypt, with the Egyptian company Dolphin, for the supply of natural gas from the Leviathan and Tamar reservoirs in a total volume of BCM64 over a period of 10 years. The financial scope of the agreement is estimated at about $ 15 billion. The price of $ 6 per unit of heat is based on linkage to the prices of a barrel of Brent oil.
This announcement by the Leviathan and Tamar partnerships removes the fear that the local market would have been in excess of supply of natural gas. According to the company's announcement, gas supply is expected to begin immediately after the completion of the infrastructure work to regulate the supply of gas to Egypt. Supply will continue until 2030.
The Israeli gas partnership does not specify which route the gas will flow to Egypt - whether through Jordan, which requires high transit fees - or through the old infrastructure of EMG. The Leviathan gas export agreement includes the sale of gas totaling 32 BCM for a period of 10 years (3.5 BCM per year) on a binding basis, including a Take or Pay mechanism for a minimum annual quantity. The total amount of the agreement is estimated at $ 7.5 billion, and it joins the export contract signed by the Leviathan partnership with the Jordanian Electricity Company (NEPCO) in September 2016, as well as additional agreements for the sale of gas to customers in the Israeli economy. It is estimated that the Egyptians intend to use the gas they buy from Israel in order to continue selling it to consumers worldwide and to become a player in the gas export market.