Israel Natural Gas Lines Company (INGL) reached an agreement with the three main gas exporters, the Tamar Partnership, the Leviathan Partnership, and Energean, to develop a new export pipeline valued at NIS 2 billion, it said.
According to the agreement, published by the director of the Natural Gas Authority at the Energy and Infrastructure Ministry, the project will be established with an investment fully funded by the exporters.
Energy and Infrastructure Minister Eli Cohen said natural gas is a strategic asset that strengthens Israel’s economic and diplomatic standing in the world in general and in the Middle East in particular.
“The construction of the new line will enable increased exports, thereby strengthening our diplomatic position and the Israeli economy,” he said. “Therefore, my policy as energy minister is to bring international energy giants to invest in Israel and to expand natural gas production for the domestic market and for export.”
The planned length of the new line (Ramat Hovav-Ashalim-Nitzana) is about 65 km., and will allow the transfer of approximately 6 billion cubic meters of natural gas per year to Egypt.
“Exports of this scale mean over NIS 150 million in annual revenues for the development of the natural gas sector, and, as noted, hundreds of millions more from taxes and royalties,” INGL said.
Expansion in cooperation and Israel's energy security
This new pipeline will not only expand exports to Egypt but also increase investments in the natural gas sector, including the search for additional reservoirs and the development of existing ones, thereby further improving Israel’s energy security. In addition, cooperation between Israel and Egypt has geopolitical, energy, security, and economic advantages, strengthening Israel’s position as an energy power in the region.
The company’s announcement comes in the same week as maintenance work in the Tamar gas field, which was reportedly shut down for 12 days starting on Wednesday, prompting Egypt to buy liquefied natural gas cargoes to keep up with the country’s demand.
“Egypt has requested suppliers to provide two additional liquefied gas shipments on top of the shipments designated for this month, estimated at about 15 shipments, to compensate for the decline in gas quantities coming from Israel,” an Egyptian government official told Saudi site Asharq.