Israel Advances $35 Billion Gas Export Deal with Egypt After Pipeline Expansion
SEATTLE (Oil Monster): With the completion of a key pipeline project, Israel has reportedly reached a major milestone in its largest natural gas export agreement, allowing it to boost gas shipments to Egypt. The upgraded infrastructure is expected to strengthen energy cooperation between the two countries and support the rising demand for natural gas in the region.
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The newly completed offshore pipeline linking Ashdod and Ashkelon increases the amount of natural gas that can be transported to Egypt through the existing export network. With the completion of the project, the pipeline's annual transmission capacity has risen from approximately 6.5 billion cubic meters (bcm) to 8.5 bcm.
The project forms part of the first phase of the landmark $35 billion gas supply agreement signed between Israel and Egypt. It must be noted that the recent addition of a third pipeline connecting the Leviathan offshore gas field to its production platform has lifted the field's production capacity to nearly 15.8 bcm per year.
As a result of the upgraded infrastructure, gas exports from Israel’s Leviathan field to Egypt are expected to increase from about 4.7 bcm per year to around 6.7 bcm, higher by almost 40%.
According to NewMed Energy, the completed transmission upgrade will enable larger export volumes while lowering transmission costs.