Chevron has signed a deal with state-owned pipeline operator Israel Natural Gas Lines to kickstart construction of the Nitzana natural gas pipeline to transport gas from the Leviathan gasfield to Egypt, the U.S. company said on Tuesday.
Nitzana would ease an energy crisis in Egypt, which has spent billions of dollars on importing liquefied natural gas and is part of a concerted effort to boost Israeli gas exports to the Arab world's most populous nation.
Last month, the owners of the Leviathan natural gas field off Israel signed a $35 billion export deal to supply gas to Egypt. Leviathan, owned by NewMed, Chevron and Ratio Energies, holds gas reserves of some 600 billion cubic metres.
The Nitzana pipeline route will transport around 600 million cubic feet of natural gas per day, once construction finishes in about three years, Chevron said, adding this would bring Israel's total export capacity to Egypt to more than 2.2 billion cubic feet per day.
Gas producer Energean ENOG.L has said it plans to send up to 2 billion cubic metres of gas a year on Nitzana from its Katlan field offshore Israel, due to start production in 2027.
The plan was announced on the same day a United Nations Commission of Inquiry concluded that Israel had committed genocide in Gaza. Israel called the assessment "scandalous" and "fake."
(Reuters - Reporting by Shadia Nasralla and Stephanie Kelly; Editing by Emelia Sithole-Matarise and Bernadette Baum)
Subscribe
