Page 10 - GLNG Week 08 2021

GLNG MIDDLE EAST GLNG

Israel to connect Leviathan

to Egyptian LNG terminals

PIPELINES & THE energy ministers of Egypt and Israel have possibility that Leviathan gas could warrant
TRANSPORT agreed in principle to construct a pipeline con- the development of a subsea link to mainland
necting the offshore Leviathan gas field with Greece and on to Italy. However, given the cost of
LNG terminals in northern Egypt. such a venture, hooking the field up to the LNG
After hosting his Egyptian counterpart Tarek plants at Damietta (10 bcm per year) and Idku
El Molla, Yuval Steinitz said that the two gov- (7.56 bcm per year) in Egypt for onward export
ernments would proceed with the plan to build in liquefied form is a considerably cheaper and
the pipeline, would continue to collaborate on more flexible option.
moving ahead with the pipeline plan and were At present, export deals with Egypt and Jor-
working on a more binding agreement. dan from Israeli gas fields cover 105 bcm over 15
A statement from his office said: “The two years; however, the creation of a new LNG export The creation
ministers agreed on the construction of [an] off- route will likely clear the path for a future expan-
shore gas pipeline from the Leviathan gas field sion phase of Leviathan as well as the develop- of a new LNG
to the liquefaction facilities in Egypt, in order to ment of the nearby Aphrodite field, which lies in
increase the gas exports to Europe through the Cypriot waters. export route will
liquefaction facilities in Egypt.” The announcement follows the January
Followers of Eastern Mediterranean gas confirmation by Delek that the partners would likely clear the
developments will not be surprised by the move, spend around $235mn to construct a pipeline path for a future
which has long been seen as the most likely and that will allow for direct gas exports from Levia-
pragmatic solution to taking gas from Leviathan, than and Tamar to Egypt following an agreement expansion phase
which holds combined 2P and 2C resources of set out in May 2019.
just under 23 trillion cubic feet (651bn cubic Under the terms of the deal, national trans- of Leviathan.
metres) of gas and 41mn barrels of condensate. mission operator Israel Natural Gas Lines
Production began in late 2019 and output is (INGL) will construct the new pipe from Ash-
nearing the 34mn cubic metres per day plateau. dod to the terminal of the East Med Gas (EMG)
The consortium developing the Leviathan gas pipeline in Ashkelon “for the purpose of export
field is comprised of Delek Drilling (45.33%), to Egypt”.
Chevron (39.66%, operator) and Ratio Oil Meanwhile, the statement also follows the
Exploration (15%). recent news that a deal is anticipated within the
With the local Israeli market largely covered next six months for Israeli gas to be supplied by
by existing flows from the country’s offshore Delek to Gaza Strip, with Qatar playing a sup-
fields, which also include the 302 bcm Tamar portive role that will likely include funding to
field, international attention has turned to the purchase the gas.™

P10 www. NEWSBASE .com Week 08 26•February•2021