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US: Leviathan signs preliminary Egypt natgas deal

By  |  November 25, 2015

Natural gas from Israel’s vast Leviathan offshore gas field will be pumped to Egypt via an existing subsea pipeline for up to 15 years under a preliminary deal announced by the field’s developers on Wednesday.

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    Leviathan, which is expected to begin production in 2019 or 2020, will supply Egypt’s Dolphinus Holdings with up to 4 billion cubic metresof gas a year for 10 to 15 years, the companies said in a statement to the Tel Aviv Stock Exchange.

    Signing a letter of intent, the two sides agreed to negotiate terms for a final deal.

    The price of gas is similar to other contracts and is linked to the cost of Brent oil and includes a floor price, they said.

    “We’ve worked with Dolphinus before and we expect to reach a final agreement quickly,” Yossi Abu, chief executive of Israel’s Delek Drilling, told Reuters.

    Development of Leviathan, which holds an estimated 622 bcm of gas, is being led by Texas-based Noble Energy and Delek Group through its units Delek Drilling and Avner Oil and Gas.

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