Egypt and Israel Corporations Sign Preliminary Natural Gas Agreement

Egypt and Israel Corporations Sign Preliminary Natural Gas Agreement


Egyptian Dolphinus Holdings Limited entered negotiations on Tuesday to import natural gas from Israel’s Leviathan offshore gas field.

According to a statement released Wednesday by the Leviathan project’s four partners, the two sides signed a non-binding letter of intent to supply Egypt with 4 billion cubic meters (BCM) per annum for a period of 10-15 years.

The natural gas will be transported using the transmission system of Israel Natural Gas Lines Ltd (Natgaz) to Ashkelon in Israel and from there to the local market in Egypt using the existing pipeline operated by East Mediterranean Gas Limited (EMG).

The EMG pipeline is partly owned by Egyptian Mubarak-era business tycoon Hussein Salem, who is currently in Spain. The underwater pipeline was constructed a decade ago to transfer Egyptian gas to Israel.

Dolphinus represents a “consortium of major Egyptian non-governmental industrial and commercial gas consumers, gas distributors and entrepreneurs,” said the Wednesday statement. In March, Dolphinus agreed on a 7-year deal with Israel’s Tamar gas field to import at least USD 1.2 billion worth of gas.

“The regional potential is being realized and the Israeli gas discoveries look to play a key role in shaping the regional energy market,” stated chief executive of Delek Drilling Yossi Abu in a statement announcing the Egyptian agreement, according to The Financial Times.

“The deal with Dolphinus is further proof of the political and economic benefits that may be derived through regional co-operation between states and energy companies,” Abu added.

“The deal is a big scandal to Egypt,” said former assistant foreign minister and former director of the International Law and Treaties department Ibrahim Yousry.

“They bought our gas with the lowest price and finished off our gas reserves, then want to sell us from our own gas fields,” the official said, claiming that the underwater Leviathan field is part of the Egyptian territory and one of three fields belonging to Egypt but taken over by other countries.

Why the state is agreeing to this deal is the question, highlighted Yousry. “There are big hidden powers in the Egyptian state [who have a hand in gas deals with Israel],” he stated.

Leviathan, one of the gas industry’s biggest recent offshore finds, is a partnership between Noble Energy Mediterranean Ltd. (39.660 percent), Avner Oil Exploration (22.670 percent), Delek Drilling  (22.670 percent) and Ratio Oil Exploration (15 percent).


Egypt Distressed With Speedy Construction of Ethiopian Dam
Egyptian Weightlifter Lands Two Bronze Medals, Breaks Records at World Championship

Subscribe to our newsletter


More in News

Egypt's Minister of International Cooperation Sahar Nasr and Japan's Ambassador to Egypt Takehiro Kagawa sign the exchange of letters for the second phase of the Grand Egyptian Museum, Monday October 24. Photo courtesy of Egypt's Ministry of International Cooperation

Egypt, Japan Sign Agreement for $460 Million Loan to Complete Grand Egyptian Museum

Egyptian StreetsOctober 24, 2016

Egypt Seizes Sugar Stocks from Edita Amid Ongoing Sugar Crisis

Egyptian StreetsOctober 24, 2016

Egypt Court Upholds Former President Morsi’s 20-Year Prison Sentence

Aswat MasriyaOctober 23, 2016
Egyptian President, Abdel Fattah El-Sisi arrives at Air Force station in New Delhi on September 1, 2016 AFP / PRAKASH SINGH

Egyptian President Sisi’s Approval Ratings Fall to 68%: Baseera

Egyptian StreetsOctober 23, 2016

Egypt’s President Sisi Calls for ‘Maximum Vigilance’ After Brigadier General Killed in Cairo

Egyptian StreetsOctober 23, 2016

Egypt Court Releases Mother of Suez FGM Victim, Postpones Trial to November

Egyptian StreetsOctober 20, 2016
John Kerry

US Shifts Over $100 Million of Aid Away From Egypt

Egyptian StreetsOctober 20, 2016

Egypt’s Mediation Efforts Secure Evacuations, Delivery of Humanitarian Aid, Says Foreign Ministry

Egyptian StreetsOctober 20, 2016
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2016 ES Media UG. All Rights Reserved.