A new impetus for Israeli gas exports

On February 18, Noble Energy and Delek Drilling announced the signing of a GSA with Egypt's Dolphinus Holdings for the export of natural gas from Leviathan and Tamar, offshore Israel, to Egypt. Dolphinus will buy 64 bcm of natural gas from the offshore Leviathan and Tamar gas fields over a period of 10 years. The deal, if approved by both governments, will be a landmark event for the region. Although Egypt exported gas to Israel between 2008-2012, the gas dynamics of both countries have changed enormously since then. With Egypt looking for more gas, this deal provides guarantees of un-interrupted supply at lower prices to what some industrial consumers are currently paying. If approved, this deal could lay the foundations for bigger volumes, and potential expansion phases of Tamar and Leviathan.