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…

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