Page 11 - AfrOil Week 03 2021

AfrOil PIPELINES & TRANSPORT AfrOil

East Med players to build pipeline

for direct gas deliveries to Egypt

EGYPT THE firms developing Israel’s Leviathan and in a controversial and opaque three-way deal
Tamar gas fields have announced that they will that saw Egyptian gas supplied to Israel, but the
construct a pipeline that will allow for direct gas facility suffered repeated attacks in the wake of
exports from the assets to Egypt. the 2011 revolution and the deal was unilater-
In a statement, Israel’s Delek Drilling said ally terminated by Cairo the following year as a
that the partners would spend around $235mn domestic shortage loomed.
to lay the new conduit while expanding existing Noble said it intends to use the line to fulfil
infrastructure. existing gas contracts with flows from Leviathan
In a company statement, Delek CEO Yossi and Tamar to Egypt.
Abu said: “The fact that we are paying most of The Ashdod to Ashkelon link will cost
the costs involved in building the new pipeline around $228mn and the expansion work
reflects the security and the confidence we have another $7mn. The upstream partners will cover
in continuing to increase exports to the coun- around 56% of the new pipeline and will provide
tries of the region.” Under the terms of the deal, guarantees for the funding taken out by INGL to
national transmission operator Israel Natural cover the balance.
Gas Lines (INGL) will construct the new pipe The new line will allow the producers to
from Ashdod to the terminal of the East Med maintain a base capacity of 5bn cubic metres per
Gas (EMG) pipeline in Ashkelon “for the pur- year of supply to Egypt following the signing of
pose of export to Egypt” following an agreement an eight-year supply deal, with gas flows to kick
set out in May 2019. off in mid-2022 and early 2023. The upper limit
The shareholders in the Leviathan project will be 7bn cubci metres per year.
are: Delek (45.34%), Chevron (39.66%) and Egypt intends to export this gas as well as that
Ratio Oil Exploration (15%), while the Tamar produced from the giant Zohr field, which lies in
shareholders are: Isramco Negev 2 (28.75%), its own segment of the East Mediterranean. ™
Chevron (25%), Delek (22%), Tamar Petroleum
(16.75%), Dor Gas Exploration (4%) and Everest
Infrastructures (3.5%).
Chevron acquired its stakes following the
2020 acquisition of fellow US firm Noble Energy
for around $5bn.
Around a year earlier, the EMED consortium
comprising Delek (25%), Noble (now Chevron,
25%) and the East Gas Co. (50%) completed a
deal to acquire a 39% stake in EMG, the owner
of the EMG pipeline, for $185mn.
The 90-km conduit connects the gas net-
works of Israel and Egypt, and had been used The 90-km link will connect the gas networks of Israel and Egypt (Image: Delek)

Shell and NNPC subsidiaries

sign domestic gas supply deal

NIGERIA SHELL Nigeria Gas (SNG), an affiliate of Royal saying it had agreed to work with Nigerian Gas
Dutch Shell (UK/Netherlands) involved in Marketing Corp. (NGMC) to deliver gas to
downstream natural gas distribution, has signed industrial consumers and manufacturing facil-
a 20-year domestic supply agreement with a ities in Nigeria.
subsidiary of Nigerian National Petroleum However, it did not reveal the value of the
Corp. (NNPC). deal or the volumes involved, or name any future
SNG confirmed the signing at the weekend, buyers.

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