BMI View: In line with our long-held view, the proposition to pipe natural gas from the Leviathan and Aphrodite fields to the Idku LNG plant in Egypt represents the most compelling export scenario for the fields. The Egyptian option is both less politically sensitive and less capital intensive than the alternative scenarios.
Royal Dutch Shell is in discussions to buy natural gas from Israel's Leviathan field, combine it with output from Cyprus's Aphrodite field in which it owns a 35% stake, and pipe it to the Idku LNG plant in Egypt. The two train LNG terminal at Idku has a capacity of 7.2mn tonnes per annum and could accept gas deliveries of around 10bcm. Sufficient offtake from the LNG facility may allow for full-field developments at Leviathan and Aphrodite, unlike other export options where demand is lower.
