Noble Energy to support delivery of natural gas from Israel to Egypt

Noble Energy and certain partners are acquiring an effective 39% equity interest in Eastern Mediterranean Gas Co. S.A.E. (EMG), which owns the EMG Pipeline. The EMG Pipeline is an approximately 90 km pipeline located primarily offshore, connecting the Israel pipeline network from Ashkelon to the Egyptian pipeline network near El Arish.

Noble Energy will own an effective, indirect interest in the pipeline of approximately 10%. In addition, and upon closing of the transaction, Noble Energy and partners will enter into an agreement to operate the pipeline, securing access to the pipeline’s full capacity.

Technical evaluation and flow reversal planning work on the EMG Pipeline is ongoing. Key conditions required prior to closing the agreements include gaining necessary regulatory and government approvals, obtaining technical third-party recertification of the EMG Pipeline, completing final transaction due diligence, and confirming sustained gas flow.

The Company’s estimated acquisition costs are approximately US$200 million, payable at closing. The closing of all transactions is expected in early 2019. 

Initial gas delivery through the EMG Pipeline is expected to occur from the Tamar field to Dolphinus Holdings Ltd in Egypt, under the company’s existing interruptible natural gas sales agreement.  At startup of the Leviathan field by the end of 2019, Noble Energy anticipates selling at least 350 million ft³/d of natural gas, gross, to contracted customers in Egypt.

Noble Energy also secured an option for an additional route and capacity to transport natural gas within Egypt by entering into a definitive transportation agreement with the owner and operator of the Aqaba El Arish Pipeline. This agreement will support the transportation of additional quantities of natural gas to Egypt over and above the amounts through the EMG Pipeline.

Read the article online at: https://www.worldpipelines.com/project-news/27092018/noble-energy-to-support-delivery-of-natural-gas-from-israel-to-egypt/