Israel Signs $3.5 Billion Natural Gas Export Agreement with Egypt
Israel announced the signing of a $3.5 billion natural gas export agreement, which its energy minister Eli Cohen called "the largest deal in Israel's history."
The joint company of the Leviathan natural gas field in Israel, "NewMed Energy," stated that the agreement includes the export of about 130 billion cubic meters of natural gas to Egypt, for a period until 2040 or until all the quantities specified in the contract are delivered.
The Israeli energy minister wrote on social media: "Signing the largest natural gas agreement in history is an important message from the perspective of national security and politics, as well as economics."
He added: "This further solidifies our position as a major energy power in the region, with neighboring countries relying on us and needing us. It is also a significant benefit for the Israeli economy, bringing billions of dollars in revenue to the treasury, creating jobs, and promoting economic development."
Reuters reported that this agreement is expected to alleviate Egypt's energy crisis. In recent years, due to the inability of domestic supply to meet demand, Egypt has spent billions of dollars importing liquefied natural gas.
According to Israel National Radio, the agreement is an expansion of the first natural gas export agreement signed in 2019, which had a volume of 60 billion cubic meters. The new agreement will triple Israel's exports to Egypt.
The natural gas will be transported via pipelines, making it less expensive than liquefied natural gas. Liquefied natural gas needs to be cooled to ultra-low temperatures to become liquid for shipment, and then re-gasified upon arrival at the destination, thus being more costly.
According to data from the "Joint Organisations Data Initiative" (JODI) cited by Reuters, the natural gas supplied by Israel accounts for between 15% and 20% of Egypt's total natural gas consumption.
The Leviathan natural gas field located in the Mediterranean began production in 2020 and also exports natural gas to Jordan. During the 12-day war between Israel and Iran, the exports from this gas field were temporarily suspended.
Sources: Israeli Media + News Agency
Original: www.toutiao.com/article/1839937628237835/
Statement: This article represents the views of the author.