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Financial Times
Newmed EnergyAdd to myFT
Israeli group strikes $35bn natural gas deal with Egypt despite Gaza conflict
Flows from Israel’s Leviathan field will nearly triple by 2029 in what NewMed chief calls a ‘win-win’
Leviathan, which is owned by NewMed, Chevron and Ratio Oil, is one of Egypt’s most important sources of natural gas, supplying about 4.5bn cubic metres a year © Reuters
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Israeli energy company NewMed has signed a $35bn deal that will eventually almost triple the flow of natural gas from the country’s vast Leviathan field to Egypt.
Leviathan, which is owned by NewMed, Chevron and Ratio Oil, is one of Egypt’s most important sources of natural gas, supplying about 4.5bn cubic metres (bcm) a year.
The deal deepens Egypt’s reliance on Israeli gas at a time when many Egyptians are angry at Israel’s offensive and disappointed that Cairo has not done more to alleviate the suffering of starving Gazans. Egypt is trying to mediate a ceasefire in the conflict and Abdel Fattah al-Sisi, the Egyptian president, recently described the Israeli offensive in the strip as a genocide.
Under the terms of the new agreement, the flow of natural gas would increase to roughly 12 bcm from 2029, said Yossi Abu, NewMed’s chief executive. “This is a win-win deal,” he said, adding that Egypt would save a “tremendous amount of money” compared with having to import liquefied natural gas.
NewMed said it would sell 130 bcm of natural gas to Egypt over the next 15 years, a total equivalent to roughly two years of the country’s total gas consumption.
To boost production from Leviathan, NewMed and its partners will add a third supply line from the gasfield to its offshore platform this year, and then spend $2.5bn to drill two new wells and install the necessary systems by 2029.
“We will increase the flow from 4.5 bcm a year to 6.5 bcm later this year, or early next year,” said Abu. “Then once we have doubled Leviathan’s capacity, we will increase from 6.5 bcm to roughly 12 bcm a year.”
Newmed EnergyAdd to myFT
Israeli group strikes $35bn natural gas deal with Egypt despite Gaza conflict
Flows from Israel’s Leviathan field will nearly triple by 2029 in what NewMed chief calls a ‘win-win’
Leviathan, which is owned by NewMed, Chevron and Ratio Oil, is one of Egypt’s most important sources of natural gas, supplying about 4.5bn cubic metres a year © Reuters
Israeli group strikes $35bn natural gas deal with Egypt despite Gaza conflict on x (opens in a new window)
Israeli group strikes $35bn natural gas deal with Egypt despite Gaza conflict on facebook (opens in a new window)
Israeli group strikes $35bn natural gas deal with Egypt despite Gaza conflict on linkedin (opens in a new window)
Israeli group strikes $35bn natural gas deal with Egypt despite Gaza conflict on whatsapp (opens in a new window)
Israeli energy company NewMed has signed a $35bn deal that will eventually almost triple the flow of natural gas from the country’s vast Leviathan field to Egypt.
Leviathan, which is owned by NewMed, Chevron and Ratio Oil, is one of Egypt’s most important sources of natural gas, supplying about 4.5bn cubic metres (bcm) a year.
The deal deepens Egypt’s reliance on Israeli gas at a time when many Egyptians are angry at Israel’s offensive and disappointed that Cairo has not done more to alleviate the suffering of starving Gazans. Egypt is trying to mediate a ceasefire in the conflict and Abdel Fattah al-Sisi, the Egyptian president, recently described the Israeli offensive in the strip as a genocide.
Under the terms of the new agreement, the flow of natural gas would increase to roughly 12 bcm from 2029, said Yossi Abu, NewMed’s chief executive. “This is a win-win deal,” he said, adding that Egypt would save a “tremendous amount of money” compared with having to import liquefied natural gas.
NewMed said it would sell 130 bcm of natural gas to Egypt over the next 15 years, a total equivalent to roughly two years of the country’s total gas consumption.
To boost production from Leviathan, NewMed and its partners will add a third supply line from the gasfield to its offshore platform this year, and then spend $2.5bn to drill two new wells and install the necessary systems by 2029.
“We will increase the flow from 4.5 bcm a year to 6.5 bcm later this year, or early next year,” said Abu. “Then once we have doubled Leviathan’s capacity, we will increase from 6.5 bcm to roughly 12 bcm a year.”
