Egypt's EGAS, Chevron to Explore New East Med Offshore Gas Deal

June 22, 2022

Leviathan platform in Israel - Credit Noble Energy
Leviathan platform in Israel - Credit Noble Energy

Egypt's state-owned gas company and U.S.-based Chevron Corp on Monday signed a preliminary agreement to explore sending natural gas from offshore Mediterranean fields to Egypt for processing and export.

The memorandum of understanding signed by Egyptian Natural Gas Holding Company (EGAS) and Chevron will consider transport, import, liquefication, and export of natural gas from the eastern Mediterranean, the ministry said.

Chevron two years ago acquired an about 40% stake in a massive natural gas field in the Mediterranean Sea off the coast of Israel. It also plans to drill its first exploration well in a concession area in the eastern Mediterranean in September, Egypt's petroleum ministry said in a statement.

Chevron also is considering gas monetization in the region, including floating LNG (FLNG) technology, the U.S. company added. FLNG involves the use of ships or offshore platforms to convert gas into a liquid for delivery on tankers.

"We look forward to continuing to build our relationship with EGAS and the Egyptian government," Chevron said. If an agreement is finalized, gas could be available for Egypt's domestic market or converted to liquefied natural gas, Chevron said.
 
(Reuters - Reporting by Ahmed Ismail; additional reporting by Gary McWilliams in Houston; Writing by Lina Najem; Editing by Toby Chopra and Diane Craft)



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