Delek Drilling has recently entered into an agreement to export gas to Egypt. The gas will be transported using the both the domestic network in Israel and the pan-Arab pipeline. According to Yossi Abu, Delek Drilling CEO, the company plans to later use Sinai’s EMG pipeline to transport gas.
Eventual plans include taking gas from the EMG pipeline to both the Leviathan and Tamar fields. When this happens, the domestic pipeline in Israel will no longer need to be used. The domestic pipeline in Israel will also likely be used to send gas to Jordan by the middle of 2019. At the end of the year, the pipeline is set to be fully functional. This is sooner than the original plan had called for.
As a result, the economy of Egypt will greatly benefit. The drilling company has plans to become a force around the globe when it comes to exporting gas. They also have plans to expand on a regional level.
The results of an upcoming market survey will determine if a new gas pipeline should be used to transport gas from Israel into Italy. The pipe would pass through Cyprus and Greece. If plans are approved, the pipe would be constructed starting in 2020. It would be completed in 2025, if all goes according to plan. All involved countries must sign an agreement to move forward.
However, the project may not come to fruition. The main reason for this is that the price of building the Mediterranean pipeline will be 35 billion shekels. The demand to have gas imported will be the driving force in getting this project off the ground.
In the past, 7 million cubic meters of gas was approved to be sent to Egypt. The gas will be taken from the Leviathan and Tamar fields. These exports will be shipped during the first few months of 2019. It has been estimated that Egypt needs 20 to 40 billion cubic meters of gas to provide for their residents.
Exporting gas to Egypt remains a priority in Israel. Ongoing efforts are underway to make Israel a valuable resource of gas.