Egyptian, Israeli firms sign $15bn natural gas deal

Egypt

An Egyptian company will buy $15 billion of Israeli natural gas in two 10-year agreements announced on Monday marking a major export deal that Israel hopes will strengthen diplomatic ties.

Egyptian company Dolphinus will buy 64 billion cubic metres of natural gas from Isreali Delek Drilling and its US partner Noble, during a 10-year period, a statement released on Monday said.

Israeli Prime Minister Benjamin Netanyahu said This will bring billions into the country’s coffers.

“I welcome the historic agreement that was announced on the export of Israeli gas to Egypt. We need to understand that this will put billions (of Israeli shekel) into the state treasury to benefit the education, health and social welfare of Israel’s citizens,” Netanyahu said.

An Egyptian government official, who declined to be identified, said the deal did not mean Egypt itself would import any gas from abroad.

According to Netanyahu, the deal would “strengthen [Israel’s] security, economy, and also strengthen regional relationships.

“A lot of people did not believe in this gas project. We have conducted with the certainty that it would strengthen our security, would strengthen our economy, would also strengthen the regional relations… But would especially stronger the citizens of Israel,” Isreali prime minister added.

Dolphinus, Delek said, is a natural gas trade company that plans to supply large industrial and commercial consumers in Egypt. It added that Egypt had amended regulations last week to allow private groups to import gas.

The companies did not give a date for when supplies to Egypt were expected to start. The means of delivering the gas to Egypt still needs to be settled.