Noble Energy Inc., Houston, has executed multiple agreements to support delivery of natural gas from Leviathan and Tamar fields, offshore Israel, into Egypt through existing infrastructure.
With certain partners, Noble Energy will acquire a 39% equity interest in Eastern Mediterranean Gas Co. SAE, which owns the 90-km EMG Pipeline. Primarily offshore, the pipeline connects the Israel pipeline network from Ashkelon to the Egyptian pipeline network near El Arish.
The EMG group owns the EMG line, which once served as a spur from the Egyptian segment of Arab Gas Pipeline for delivery of gas to Israel but has been idle since 2011 because of sabotage of the main line (OGJ Online, Nov. 25, 2015).
Noble Energy will own an indirect interest of 10% in the pipeline on closing and is expected to operate the pipeline. Technical evaluation and flow reversal planning work on the EMG Pipeline is ongoing.
Conditions required prior to closing the agreements include gaining regulatory and government approvals, obtaining technical third-party recertification of the EMG Pipeline, completing final due diligence, and confirming sustained gas flow. Estimated acquisition costs of $200 million are payable at closing, which is expected in early 2019.
Initial gas delivery through the EMG Pipeline is expected to occur from Tamar field to Dolphinus Holdings Ltd. in Egypt under the company’s existing interruptible gas sales agreement (OGJ Online, Feb. 19, 2018). At startup of Leviathan field by yearend 2019, Noble Energy expects to sell at least 350 MMcfd of gas (gross) to contracted customers in Egypt.
Meantime, the company secured an option for an additional route and capacity to transport natural gas within Egypt through a transportation agreement with Aqaba EL Arish Pipeline’s owner and operator.
