Natural gas pumping from Israel to Egypt to start on Wednesday

Natural gas pumping from Israel to Egypt will start on Wednesday, the Egyptian ministry of petroleum announced in a statement early on Wednesday.

The ministry added that this step is an important development that serves both countries economic interests, and it will enable Israel to transport its natural gas to Europe through Egyptian liquefied natural gas factories.

Under the landmark deal, a private firm in Egypt, Dolphinus Holdings, will purchase 85 billion cubic meters (bcm) of gas, worth an estimated $19.5 billion, from Israel’s Leviathan and Tamar offshore fields over 15 years.

Yossi Abu, CEO of Israel’s Delek Drilling, one of the partners in Leviathan and Tamar, said the arrangement “marks a new era in the Middle East energy sector”. The gas is being supplied via a subsea pipeline connecting Israel and Egypt’s Sinai peninsula.

Israeli officials have called the export of gas the most significant deal to emerge since the countries signed a historic peace treaty in 1979.

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