British gas producer Energean has signed a 15-year transmission agreement for Israel’s planned Nitzana pipeline, a move that will significantly boost natural gas exports to Egypt.

According to the company’s announcement on Friday, the deal signed with state-owned pipeline operator Israel Natural Gas Lines covers the transmission of up to 1 billion cubic meters of natural gas annually, with options for extension and early termination.

The Nitzana pipeline is expected to run from Ramat Hovav in southern Israel to the Egyptian border near Nitzana, transporting around 600 million cubic feet of natural gas per day.

This new infrastructure is part of an effort to ease Egypt’s energy crisis and will bring Israel’s total gas export capacity to the nation to more than 2.2 billion cubic feet per day.

According to Energean, the pipeline is expected to be operational within three years, pending transmission agreements from all parties involved.

Energean Israel will fund 16.4% of the construction costs for the pipeline and an associated compression station, amounting to approximately $100 million, the company said. The agreement is part of Energean’s $4 billion portfolio of Israeli gas offtake contracts.

The company also announced it had signed a non-binding term sheet with an East Mediterranean client for future gas offtake.

https://www.pipeline-journal.net/news/energean-signs-15-year-deal-new-israel-egypt-gas-pipeline