Saturday, 24th February, 2024
Saturday, 24th February, 2024

Chevron eyes subsea pipelines to send Israeli gas to Egypt

Chevron and other companies helping to develop Israel’s natural gas fields will invest around $235 million in pipelines to export the fuel to Egypt.

The partners in the Leviathan and Tamar fields, which sit off Israel’s Mediterranean coast, signed an agreement under which Israel Natural Gas Lines Ltd. will lay a new subsea pipeline and expand some of its existing ones, according to a statement Tuesday from Delek Drilling LP, a shareholder in both reservoirs.

INGL will build a pipeline between the Israeli coastal cities of Ashdod and Ashkelon, near the border with the Gaza Strip. Along with the expansion of other lines, it will enable the partners to send as much as 7 billion cubic meters of gas annually to Egypt, Delek said.

The new route will cost 738 million shekels and the expansion work will be about 27 million shekels, Delek said. The gas companies will pay for 56% of the new pipeline and provide guarantees on the funding that INGL takes on to cover the rest.

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