Egypt Israel Gas Agreement

Although previous economic deals with Israel have been controversial in Egypt, where support for the Palestinians is high, relations have continued to heat up. On Sunday, Israel and Egypt confirmed that the pipeline deal is expected to be reached in the following days. JERUSALEM (AP) — Israel said Wednesday it began exporting natural gas to Egypt in December, as part of an agreement between the two countries. Israel already supplies small amounts of gas to the Palestinians and Jordan, with which Delek and Noble signed their first export deal in 2016. The agreement is expected to strengthen regional relations and Egypt hopes the new agreement will help become a regional energy hub. Egypt will also allow Israel to export some of its natural gas to Europe via liquefied natural gas (LNG) facilities in Egypt. The use of the disused EMG gas pipeline from Ashkelon in southern Israel to al-Arish in northern Sinai has always been an obvious transportation option as long as the Egyptian appetite for purchase was there; However, an agreement with the existing owners of the asset was made difficult by the ongoing claims against Cairo in connection with the initial export operation. During the onboard approval of the midstream deal with Noble and Delek, israel`s competition authority said the gas could not be exported at a price lower than the price charged to local consumers. The signing of the treaty is the first time Egypt, which was the first Arab country to sign a peace pact with Israel in 1979, imports gas from the country. In January, Egypt held its first regional gas forum. Israel`s energy minister participated with several regional delegations in the first visit by an Israeli cabinet member since the Arab Spring insurgency in Egypt in 2011. Sign up here to access free tools such as favorites and warnings or to access personal subscriptions.

Israel`s focus on its new gas reserves found over the past decade has been sharply criticized by environmental and social activists.