The Ministry of Petroleum has been informed that negotiations with Israel are being held regarding gas imports to operate an EDCO liquefaction plant affiliated to British Petroleum (BG), according to an official at the company.
In a statement to Al-Borsa, the official said the ministry approved the request to operate the plant using Israeli gas, adding that they received the approval through higher entities, since it is a political decision.
BG is said to have signed a letter of intent with partners of Lothian Israeli field for natural gas in June to import gas to EDCO plant.
Negotiations aim at agreeing on importing roughly 7bn cubic metres of gas annually for a period of 15 years through a marine pipeline.
EGAS is planning to pump around 100m cubic feet of gas annually to EDCO liquefaction plant within 2015 as a result of the declining gas production in fields.
A government official declared that Chairman of Dolfinos Holdings Ltd. Alaa Arafa met with officials from the Ministry of Petroleum to discuss importing gas from Israel. The imported gas would be used in Egypt’s industrial sector, and officials informed the political entity to look into the issue.
In a statement to Al-Borsa, the official said that, sooner or later, Israeli gas will be imported to Egypt, but the decision will be taken at the right time.
On 19 October, Alaa Arafa announced in a statement that the letter of intent has been signed with companies working in Tamar gas field to import gas to Egypt.
This took place following Israeli reports outlining the letter of intent is not obligatory, in favour of a non-governmental alliance with Arafa.
Israeli economic website The Marker said companies working in the Tamar field signed the letter of intent with Dolfinos Holdings Ltd. on Friday. This would allow them to negotiate an agreement to import natural gas to Tamar through the existing gas pipeline. East Mediterranean Gas Ltd. will operate the field in order to offer it to Egypt.
In the latest statement, however, Arafa denied negotiations with Israel on importing Israeli gas.
Minister of Petroleum Sherif Ismail said: “Everything is possible as long as it serves the country and the Egyptian economy. The country’s role in the region will help decide on importing gas from Israel.”