...

Noble Energy talks on Israeli gas supply to Egypt

Oil&Gas Materials 29 August 2017 11:35 (UTC +04:00)

Baku, Azerbaijan, Aug. 29

By Leman Zeynalova – Trend:

Negotiations underway to supply Israeli natural gas to both liquefied natural gas (LNG) plants in Egypt, as well as to Egypt’s market, a source in the Houston-based Noble Energy company told Trend.

The US oil and gas company Noble Energy operates Israel’s Leviathan gas field in partnership with Israeli Delek Group.

“The Egyptian market and LNG plants have sufficient demand to accommodate Leviathan, Aphrodite (Cyprus) and other regional developments,” said the source.

A growing population of around 90 million people will increase an already strong demand from the Egyptian market, the source said, adding that gas makes up more than half of Egypt’s energy mix and fuels more than 60 percent of its electric power generation.

The industrial sector remains largely under-supplied, particularly during the peak summer months, according to Noble Energy.

Earlier, it was reported that Royal Dutch Shell Plc is in talks to buy natural gas from Israel’s Leviathan field, combine it with output from Cyprus’s Aphrodite field, in which it owns a 35 percent stake, and pump it to a liquefied natural gas plant in Egypt.

The partners on Israeli Leviathan gas field have approved the development plan for the field with a target production date for late 2019.

The development plan envisages production of about 12 billion cubic meters of gas a year at a cost of $3.5-4 billion.

The Israeli partners in Leviathan include Delek Drilling and Avner Oil, each with a 22.67 percent stake, and Ratio Oil with a 15 percent stake. Moreover, Noble Energy Mediterranean Ltd has a 39.66-percent stake in the project.

The Leviathan field was discovered in 2010. According to Noble Energy, Netherland, Sewell & Associates estimates Leviathan’s recoverable resources at 21.9 trillion cubic feet (620 billion cubic meters).

---

Follow the author on Twitter: @Lyaman_Zeyn

Tags:
Latest

Latest