$35 Billion: Israel Begins Implementation of Largest-Ever Gas Export Deal with Egypt
Israel has begun the operational implementation of its largest-ever natural gas export agreement with Egypt, valued at approximately $35 billion, following Neomed Energy’s announcement that a new offshore pipeline between Ashdod and Ashkelon has been completed.
The new pipeline, constructed by Israel’s National Gas Transmission Company, will increase natural gas exports to Egypt via the EMG pipeline linking Ashkelon and El-Arish by an additional 2 billion cubic meters (bcm) per year, raising the pipeline’s total annual capacity from 6.5 bcm to 8.5 bcm.
With the completion of this infrastructure and the addition of a third pipeline from the Leviathan gas field, boosting its annual production capacity to 15.8 bcm, Israel’s contractual gas exports to Egypt are expected to increase by 40%, from 4.7 bcm to 6.7 bcm annually.
Neomed Energy CEO Yossi Abu described the project as the removal of a “major bottleneck” in Israel’s export infrastructure, saying it will reduce transportation costs and help meet growing energy demand in Egypt and regional export markets.
ME24
