Lucie Roux, Editor: James Burgess
London — East Mediterranean Gas has successfully completed gas flow tests from Tamar's field in Israel, and exports to Egypt are expected to start by the end of the year, Israeli partner Delek Drilling said Monday.
"Today's announcement confirms that the technical side is now complete and the pipeline is now ready to handle up to 7 Bcm a year," a spokesman from Delek told S&P Global Platts.
Exports via EMG, together with the incremental production from BP's West Nile Delta and Eni's Zohr projects, should allow Egypt boost its LNG exports by the end of 2019.
The project's partners -- US-based producer Noble Energy, Delek Drilling and Egyptian-owned Sphinx EG -- have been working to bring the EMG back into service, with a reverse flow capability from the Leviathan field to Egypt, the spokesman said.
The projected start is subject to completion of the acquisition by the partners of a 39% stake in pipeline owner EMG Company, which is now expected by the end of August, Delek said.
The $518-million agreement allows the partners to operate the pipeline, which has been mothballed since 2012.
Egypt ended its exports to Israel after supply shortages and recurrent attacks on the infrastructure.
Egypt has one operating LNG export terminal, the 7.2 million mt/year Idku plant, operated by a Shell-led consortium.
The 5 million mt/year Damietta, operated by UFG, a joint venture between Italy's Eni and Spain's Naturgy, remains idled.
SOURCE
"Today's announcement confirms that the technical side is now complete and the pipeline is now ready to handle up to 7 Bcm a year," a spokesman from Delek told S&P Global Platts.
Exports via EMG, together with the incremental production from BP's West Nile Delta and Eni's Zohr projects, should allow Egypt boost its LNG exports by the end of 2019.
The project's partners -- US-based producer Noble Energy, Delek Drilling and Egyptian-owned Sphinx EG -- have been working to bring the EMG back into service, with a reverse flow capability from the Leviathan field to Egypt, the spokesman said.
The projected start is subject to completion of the acquisition by the partners of a 39% stake in pipeline owner EMG Company, which is now expected by the end of August, Delek said.
The $518-million agreement allows the partners to operate the pipeline, which has been mothballed since 2012.
Egypt ended its exports to Israel after supply shortages and recurrent attacks on the infrastructure.
Egypt has one operating LNG export terminal, the 7.2 million mt/year Idku plant, operated by a Shell-led consortium.
The 5 million mt/year Damietta, operated by UFG, a joint venture between Italy's Eni and Spain's Naturgy, remains idled.
SOURCE
