American petroleum and natural gas explorer and producer Noble Energy has signed a number of agreements to support natural gas delivery from the Leviathan and Tamar fields into Egypt.
Noble Energy and partners, including Israeli gas operator Delek Drilling and Egyptian partner East Gas, have signed agreements to acquire a 39% stake in East Mediterranean Gas, for $518m.
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East Mediterranean Gas manages the inactive 90km-long EMG gas pipeline that links the Israeli gas network from Ashkelon to the Egyptian network near El-Arish. Noble Energy will own an indirect interest in the pipeline of almost 10%.
Upon completion of the transaction, Noble Energy and partners will sign an agreement to operate the pipeline and to secure access to its full capacity. The completion of all transactions is scheduled in early 2019.
The mainly undersea pipeline will be used to transport natural gas from the Tamar and Leviathan reservoirs to Egypt from next year.
Noble Energy and its partner Delek noted that the agreements will help to execute a $15bn deal signed in February with Egypt’s Dolphinus to complete a 64 billion cubic meters of natural gas delivery from the Tamar and Leviathan gas fields, for a period of 10 years.
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By GlobalDataNoble Energy offshore senior vice president J Keith Elliott said: “The announcements mark significant steps forward in supplying natural gas from the world-class Tamar and Leviathan fields to regional customers through existing infrastructure.
“With these agreements, we are securing the capacity to deliver on our firm gas sales agreement with Dolphinus for Leviathan while also allowing for interruptible sales from Tamar into Egypt. This further solidifies the strong cash flow growth anticipated from our Eastern Mediterranean assets.”
Initially, the gas will be supplied from the Tamar field and later from the much bigger Leviathan field currently under development. Dolphinus, an Egyptian company that supplies gas to industrial and institutional users, will buy the gas.
Once the Leviathan field starts production by the end of 2019, Noble Energy aims to sell at least 350 million cubic feet of natural gas per day gross to contracted customers in Egypt.
Additionally, Noble Energy secured an option for an additional route and capacity to transport natural gas within Egypt with the signing of a transportation agreement with the owner and operator of the Aqaba El Arish Pipeline.
