Israel buys stake in Egyptian strategic gas company

Egyptian and Israeli partners have agreed to buy a stake in Egypt’s Eastern Mediterranean gas pipeline in a deal that companies said would enable Israel to start exporting gas to Egypt in early 2019.

Under the agreement, Egyptian and Israeli partners will receive 39 percent of the Egyptian Eastern Gas Company’s gas pipeline, for $ 518 million.

Israel’s Delek Drilling and Noble Energy, which jointly develop Israeli gas fields, paid $ 185 million, while Egypt’s Oriental Gas paid $ 148 million to buy a stake in East Mediterranean Gas, Pipes between Egypt and Israel.

The deal, which was announced Wednesday night, and other related deals in early 2019, are expected to be completed on Thursday, the Israeli newspaper Ha’aretz reported Thursday.

The deal will allow Egypt to supply 64 billion cubic meters of gas worth $ 15 billion from Israel’s Tamar and Luthian fields under a landmark deal signed in February.

“The deal is historic, and will contribute to making Egypt a regional energy hub and placing it in the ranks of large global power centers,” said Yossi Abu, CEO of Delek Drilling.

Eastern Mediterranean Gas Company owns a pipeline under the sea between Ashkelon in Israel and El Arish in Egypt.

The deal included the approval of the “Eastern Mediterranean Gas” to terminate the courts with Egypt and drop the lawsuits against Cairo, in connection with the cancellation of a gas deal with Israel several years ago, according to the company “Delek Drilling” in a statement.

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