Energy Firms in Talks to Sell Israeli Gas to Egypt

(Wall Street Journal) Joshua Mitnick and Summer Said - The drilling consortium led by Israel's Delek Group Ltd. and Texas-based Noble Energy is holding initial talks on a deal to supply gas to Egypt. On Wednesday the consortium signed a deal to supply gas to Jordan. The potential deal with Egypt would involve exporting up to eight billion cubic meters of gas a year from the Leviathan field. It would go to liquefied natural gas facilities run by the UK's BG Group PLC in northern Egypt via an underwater pipeline or the existing Ashkelon-el-Arish line in the Sinai Peninsula, according to two Egyptian officials. Importing gas from Israel is a cheaper option for Egypt, which has been overwhelmed by local demand and can't meet foreign export commitments. Such an agreement would be a reversal from previous years when Egypt exported gas to Israel.

2014-02-21 00:00:00

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