Government approves $1 bn worth of natural gas to Egypt
Energy minister signs off on sale of up to 5 bn cubic meters of gas, which he calls ‘a harbinger of energy cooperation’ in the region.
The government approved on Wednesday the exportation of natural gas worth about $1 billion to Egypt. Energy Minister Yuval Steinitz (Likud) made the decision after consulting Prime Minister Benjamin Netanyahu.
The approval applies to a contract signed in March between the Tamar reservoir partners and the Egyptian company Dolphinus Holdings, a consortium that serves non-government consumers.
The approval was the second time the government has approved gas exports, following the approval in April of exports to a Jordanian company.
The contract with Dolphinus includes the sale of up to 5 billion cubic meters of natural gas over seven years, with the annual amount changing based on demand. The contract is estimated to be worth more than $1 billion.
“After years of disputes and delays, we are starting to move forward and position Israel as a regional natural gas powerhouse,” said Minister Steinitz. “Approval of exports to Egypt, in accordance with the government’s decision, is a harbinger of energy cooperation that will develop in the coming years with countries of the region, like Egypt, Jordan, Greece, Turkey, and European countries in general.”