Energizing diplomacy with our neighbors - THE JERUSALEM POST

THE LEVIATHAN jacket.. (photo credit: ALBATROSS)

MARCH 22, 2019 16:20
MAAYAN JAFFE-HOFFMAN

Forty years on, Israel-Egypt energy cooperation opens the door to warmer relations

Is natural gas propelling us toward the future frontier of stronger Jerusalem-Cairo ties?

The energy cooperation deal signed between Israel and Egypt is the Jewish state’s first significant economic agreement with Egypt since the 1979 peace accord – and a dramatic step up in political and economic relations.

So said Amir Foster, head of strategy and research at the Association of Oil & Gas Exploration Industries, explaining that joint energy cooperation has already led to results in the field. 

In September 2018, Noble Energy and Delek Drilling signed agreements to purchase a stake in the Eastern Mediterranean Gas Company pipeline to advance the export of gas to Egypt.

“This was not just ‘another deal,’ but a dramatic development that changes the existing situation, providing the physical infrastructure for realizing the gas export deal with Egypt signed in February 2018,” Foster said.

Ahead of London IPO, Delek Drilling buys 3 Israeli licenses - GLOBES

Yitzhak Tshuva

20 Mar, 2019 16:39
Amiram Barkat

Two of the licenses are land oil exploration licenses and the third is the Roei offshore gas exploration license.

Delek Drilling LP (TASE: DEDR.L) is acquiring additional oil and gas exploration licenses in preparation for implementation of its plan for splitting off its subsidiary, which will hold the Leviathan and Aphrodite natural gas reservoirs, and which will hold an offering on the London Stock Exchange.

The partnership, controlled by Delek Group Ltd. (TASE: DLEKG), whose controlling shareholder is Yitzhak Tshuva, today announced its entry into three new Israeli licenses: the Roei marine gas exploration license and the Yahel Hadash and Ofek Hadash land exploration licenses.

The Roei deal is based on exercising an option for 20% of the rights that Delek Drilling received in 2012 in lieu of its fee for its mediation role in the deal between the Ratio Oil Exploration (1992) LP (TASE:RATI.L) license holder (it was the Gal exploration permit at the time) and Italian company Edison, the operator for the license. Delek Drilling is now exercising its option to buy 5% more of the rights from Ratio in order to reach a 24.99% share of the rights in the license. Delek Drilling will not pay a substantial amount for the deal, beyond reimbursement for its proportional share of the partners' past expenses.

Proudly presenting the Karish Development Project - ENERGEAN OIL & GAS

Energean Oil & Gas proudly presenting the Karish Development Project (First Steel Cut version) in a 4:09 minute video.

Natural gas pipeline to Jerusalem completed - GLOBES

21 Mar, 2019 10:36
Daniel Schmil

The 18-inch-diameter, 34-kilometer-long pipeline cost NIS 290 million to build.

Israel Natural Gas Lines Company inaugurated the natural gas pipeline to Jerusalem in a ceremony attended by Minister of National Infrastructures, Energy, and Water Resources Yuval Steinitz and Jerusalem Mayor Moshe Lion. The 18-inch-diameter, 34-kilometer-long pipeline cost NIS 290 million to build.

The pipeline was built in two parts. The western part starts at the Yesodot block valve station near the Soreq Interchange on the Cross Israel Highway. The other part begins at the Mesilot Zion station next to Sha'ar Hagai and ends at the pressure-reducing station at Beit Zayit. The pressure reducing facility itself has not yet been completed, and gas can flow only to enterprises and consumers in the Jerusalem area after it is completed, through the Rotem distribution company. Connection of the first consumers to gas is scheduled for 2020.

Pompeo welcomes trilateral cooperation (Update 2) - CYPRUS MAIL

US Secretary of State Mike Pompeo, President Anastasiades,
Israeli Prime Minister Benjamin Netanyahu and Greek
Prime Minister Alexis Tsipras in Jerusalem

MARCH 20, 2019

Jean Christou

The governments of Cyprus, the US, Israel and Greece on Wednesday agreed to increase regional cooperation, support energy independence and security, and to “defend against external malign influences” in the Eastern Mediterranean and the broader Middle East.

The US Secretary of State Mike Pompeo, who attended the Jerusalem summit, expressed US support for the trilateral mechanism established by the three countries when, according to a brief official declaration following the summit, they met “to affirm their shared commitment to promoting peace, stability, security and prosperity in the Eastern Mediterranean region”.

According to the statement, Pompeo noted the importance of increased cooperation with the three countries.

Joint Statement USA Greece Israel Cyprus - TWITTER CYPRUS FM

Ithaca to operate Alon D license off Israel - OIL & GAS JOURNAL

HOUSTON, Mar. 19
MARCH/19/2019

Ithaca Energy Inc., a wholly owned Canadian subsidiary of Delek Group Ltd., will become operator of the Alon D exploration license offshore Israel under an agreement with Noble Energy Mediterranean Ltd.

Noble, the current operator with a 47.059% interest, is withdrawing from the license.

The Alon D block is immediately east of Noble’s Karish natural gas discovery on a block now operated by a subsidiary of Energean Oil & Gas PLC, London (OGJ Online, May 23, 2013).

Delek Drilling LP holds a 52.941% interest in the Alon D license.

Under the new agreement, interests will be Delek Drilling, 75%, and Ithaca Energy, 25%.

Delek Group said it approached “several potential operators” that showed no interest in the role.

Cyprus seeks EUR 150 mln EIB financing for Nat gas infrastructure - FINANCIAL MIRROR

19 March, 2019

Cyprus is in talks with the European Investment Bank (EIB) for over a €150 mln in financing for the construction of infrastructure to transport natural gas to the island, said Finance Minister Harris Georgiades.

EIB President Werner Hoyer appeared optimistic that the credit institution will be able to take part in the project.

“From 2013 until today we have signed financing agreements of a value of €1.5 billion,” the Finance Minister said at a Nicosia press conference Monday.

“Half of that amount is aimed at small and medium size enterprises through Cypriot banks, this has contributed in a decisive way to the Cypriot economy’s recovery,” he added.

The government aims to maintain and expand on financing programmes for small and medium size enterprises.

Eni to complete Zohr gas processing station in April - ENTERPRISE

Monday, 18 March 2019

Italy’s Eni will by April have completed the construction of a gas treatment station for Zohr-produced gas in Port Said’s El Gameel region, which will connect to the Damietta liquefaction plant, an industry source told the domestic press. 

The Damietta liquefaction plant, of which Eni owns 26%, will be able to export 750 mn cf/d after the completion of the plant.

Natural gas should be shared equitably in context of solution- U.S. ambassador - IN-CYPRUS

March 18, 2019 at 1:19pm
Edited by Stelios Marathovouniotis

Cyprus’ natural gas resources should be shared equitably between Turkish and Greek Cypriots in the context of an overall settlement, U.S. ambassador to Cyprus, Judith Garber said on Monday.

Garber made these statements after presenting her credentials to President Anastasiades after assuming her duties.

“The new energy discoveries come with great promise and equally great responsibility. The United States has consistently recognized the right of the Republic of Cyprus to develop the resources in its Exclusive Economic Zone. We continue to believe these resources should be equitably shared between both communities in the context of an overall settlement,” Garber said.

These finds should lead to the greater prosperity and stability of the entire region and help diversify Europe’s energy supply, she added.

She described Cyprus as a valued friend and an important partner in a critical region.

Egypt’s imports of Israeli gas delayed to mid-2019 due to pipeline doubts - ENTERPRISE

Monday, 18 March 2019

Egypt’s imports of Israeli gas delayed to mid-2019 due to pipeline doubts: Egypt will begin receiving its first shipments of Israeli gas in the middle of this year, two sources familiar with the matter told Bloomberg. Egypt’s East Gas originally expected trial shipments from Israel’s Tamar and Leviathan gas fields to begin this month, but the sources said that the pipeline still requires further maintenance. Petroleum Minister Tarek El Molla also told the CERAWeek energy conference in Houston last week that Egypt will start importing Israeli gas by mid-2019.

Background: East Gas, Noble Energy and Delek Drilling last year signed a USD 518 mn deal for a 39% stake in Ashkelon-Arish pipeline operator Eastern Mediterranean Gas (EMG), which was supposed to have paved the way for Egypt to begin importing an initial 100 mn scf/d in 1Q2019. In the time since, doubt has been raised over the capability of Israel’s domestic pipeline infrastructure to handle the quantity of gas agreed in last year’s USD 15 bn gas deal. The two countries began talks in January over the construction of a new subsea pipeline that would enable Israeli gas to flow directly to Egypt’s Idku facility, eliminating the need to expand Israel’s onshore infrastructure.

Egypt- Idku liquefaction plant to work at full export capacity by June: El-Molla - MENAFN / DAILY NEWS EGYPT

March/17/2019 3:20:51 AM 

(MENAFN - Daily News Egypt) Egypt's Ministry of Petroleum aims to increase the amount of gas exported of Idku gas liquefaction plant to 1.13bn cubic feet of gas per day (scf/day) by June, up from the current 800m scf/day, the Minister of Petroleum, Tarek El-Molla, told Daily News Egypt on Saturday.

The plant, operated by Royal Dutch Shell, is to operate at full capacity, following the linkage of gas production from Eastern Mediterranean fields, and achieve self-sufficiency, according to El-Molla. Ownership of the Idku plant is divided among Egyptian General Petroleum Corporation (EGPC) with 12%, Egyptian Natural Gas Holding Company (EGAS) with 12%, Shell with 35.5%, Petronas with 35.5%, and Gaz de France with 5% stake.

El-Molla explained that Egypt is on the right track toward becoming a regional gas hub, exporting the surplus of natural gas production, giving a priority to electricity consumption, followed by factories, houses, and cars, respectively. In case of a surplus, the amount will be exported to international markets through the Idku plant and the Jordan gas pipeline.The contractual rate of Idku plant is 1.13bn scf/day. These rates have decreased since 2011 until it was finally stopped at the beginning of 2015.

Pipeline Snag to Delay Israel Gas to Egypt for 3 Months - BLOOMBERG

March 17, 2019, 2:47 PM GMT+2

Yaacov Benmeleh

• Egypt expects to get first test flows mid-year, not March
• Israel will pipe gas to Egypt under a $15 billion deal

Egypt will begin receiving gas from Israel under a $15 billion deal around the middle of the year, after unexpected issues with the pipeline connecting the two countries delayed the start-up by several months, people familiar with the situation said.

Egyptian Oil Minister Tarek El-Molla told the CERAWeek conference in Houston last week that the government expects the first flows of Israeli gas to arrive around mid-year.

He didn’t give details, but two people familiar with the situation said due diligence by the companies involved had discovered that the pipeline would require more work than expected to bring it online. The Egyptian partner in the project had said he expected trial quantities to begin flowing in March if the pipeline was found to be in good condition.

The companies developing Israel’s largest natural gas fields and their Egyptian partner agreed last year to buy a 39 percent of the East Mediterranean Gas Co., which owns the sub-sea pipeline connecting southern Israel to Egypt’s Sinai Peninsula, clearing the main legal obstacle to the 10-year export contract.