Israeli gas exports to Egypt to remarkably increase by 21.3bn cubic meters (bcm) (751.98bn cubic feet) to record a total of 85.3 bcm over 15 years, Delek Drilling and Noble Energy announced on Wednesday.
In 2018, two 10-year agreements worth $15bn to export Israeli natural gas to Egypt were signed. The agreements between Delek Drilling and Noble Energy—the operators of Israel’s largest natural gas fields Tamar and Leviathan—and the Egyptian company Dolphinus Holdings, to supply Egypt with 64 bcm of gas.
Under the amended agreement, the companies said the amount to be sold from the Leviathan field will nearly double to 60 bcm, up from the 32 bcm originally contracted of gas over 15 years. While exports from the nearby Tamar field will be reduced to 25.3 bcm from 32 bcm over the same period.
According to the agreement, gas exports from Leviathan will start on 1 January 2020, and will continue until 31 December 2034 or until the supply of the full contractual quantities of gas. While the exports from Tamar will start on 30 June 2020 and will continue until 31 December 2034.
The documents issued by the two companies showed that 2.1 bcm to be exported from Leviathan.
From 1 January 2020 to 30 June 2020, and from 1 July 2020 to 30 June 2022 around 3.6 bcm per year, and finally from 1 July 2022 to the agreement termination date approximately 4.7 bcm per year.
In Tamar’s case, 1 bcm per year to be exported from 30 June 2020 till 30 June 2022, and in the period beginning on 1 July 2022 to the Tamar agreement termination date approximately 2 bcm per year.
The document shows that in case that Dolphinus does not purchase the total contractual quantity set forth under agreements, the two companies shall be entitled to extend the supply period by up to two additional years.
Egypt aims to turn into a regional gas hub, through exploiting the country’s LNG plants in Idku and Damietta, through importing gas from Israel and Cyprus and re-exporting them to other markets. Both Cyprus and Israel need Egypt, as it already has all the necessary infrastructure in place.