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Tuesday, March 19, 2019
While speaking to attendees at CERAWeek in Houston last week, Minister of Petroleum Tarek El Molla of Egypt said that he expects gas flows from Israel in mid-2019. The $15 billion deal was expected to bear fruit earlier but issues on the pipeline connecting the countries caused a delay.
The delay put the start-up of gas flows off by several months.
The Egyptian partner, Egyptian East Gas Co., in the project had said they expected trial quantities to begin flowing in March if the pipeline was found to be in good condition. Egypt will initially import gas from Israel’s Tamar field and receive flows from nearby Leviathan once it comes online at the end of the year.
Partners in the project, Israel’s Delek Drilling LP, US-based Noble Energy Inc., and the Egyptian East Gas Co. will have to import spare parts for the pipeline.
The companies are working to reverse the flow of the pipeline, which used to carry Egyptian gas to Israel. The pipeline has been idle since Egypt halted exports in 2012 due to a domestic energy shortage. The pipeline was also a favorite target of Islamic militants in the northern Sinai.
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