Israel, Egypt Sign Landmark $15 Billion Natural Gas Deal
The Israeli company Delek Drilling and its American partner Noble Energy have signed a $15 billion deal to supply the Egyptian company Dolphinus Holdings with 64 billion cubic meters of natural gas over the next ten years. The transaction is the largest so far for Israel’s new gas export industry. Observers report that although the bulk of the gas will be earmarked for Egyptian domestic consumption, it is expected that the agreement will ultimately lead to Egypt becoming an export hub for the Israeli gas. There are two major gas fields being worked in Israel, the Tamar field which is already operative and the huge Leviathan field which won’t go operational for another year. The Egyptian-Israeli agreement deals with gas from the Tamar field. The Israelis already have a massive contract in place: a $10 billion deal to supply Jordan with 45 billion cubic meters of gas that was signed in 2016. Notably, the first two massive contracts are with the two Arab states that have signed peace treaties with the Jewish state.