Stuart Elliott, Editor: Alisdair Bowles
London - Tests to flow Israeli gas through the East Mediterranean Gas (EMG) pipeline to Egypt are now under way and are expected to be concluded at the end of this month ahead of the startup of significant exports later in the year, an industry source told S&P Global Platts Thursday.
US-based producer Noble Energy and its Israeli partner Delek Drilling -- together with Egyptian-owned Sphinx EG -- in September last year agreed to buy a 39% stake in the idled EMG pipeline for $518 million as part of plans to use the pipeline in reverse for Israeli gas to flow to Egypt.
"Tests are under way and are on track to be completed as scheduled by the end of June. Once that is done, gas from the Tamar field can start to flow through the EMG pipeline on an interruptible basis," the source said.
Noble could not be reached for comment, while Delek Drilling declined to comment.
The pipeline -- which runs for 90 km off the Israeli and Egyptian coasts -- connects the Israel pipeline network from Ashkelon to the Egyptian pipeline network near El Arish.
It started operations in 2008 to flow Egyptian gas to Israel until 2012 when operations were halted as Egypt's gas production began to decline after the Arab Spring the previous year.
