Israel Could Double Gas Export Capacity to Egypt

Subsea pipeline that would connect Israel’s Leviathan gas field to Egyptian liquefied natural gas (LNG) terminals could double Israel’s gas export capacity to Egypt. Israel started exporting gas to Egypt at the beginning of last year through an existing pipeline that runs offshore before crossing the north of the Sinai Peninsula overland. The gas can be liquefied at Egyptian plants of Idku and Damietta and re-exported to Europe or Asia. Leviathan field, located 130 km (80 miles) off Israel’s coast, already supplies the Israeli domestic market and exports gas to Jordan and Egypt. Its shareholders include Chevron Corp and Delek Drilling LP.

Demand for gas in Europe would be sufficient to make additional exports viable for at least the next 15 years, and that more rapidly growing demand in India also provided a promising market. Exports crossing the Sinai Peninsula by pipeline had not been affected by occasional attacks on gas infrastructure by militants operating in the area.

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