Egypt will begin importing Israeli natural gas for re-export in early 2019

Egyptian companies plan to start importing natural gas from Israeli offshore fields in the first quarter of 2019 and re-export it as part of their plans to become a regional gas hub, Egyptian energy industry sources told Reuters
, Reuters News on August 7.

In February, Israel's Dehler Group and Houston-based Noble Energy — a key partner in Israel's two large gas fields — signed an agreement to sell large quantities of gas from the Leviathan and Tamar fields to Dolphinus Holdings to supply gas
in Egypt.

The agreements, one from Leviathan and one from Tamar, each have a total contract quantity of 1.
15 trillion cubic feet of gas
.
Noble Energy said in February that it expects gas sales under the 10-year contract to supply
industrial and petrochemical customers, as well as future power generation in Egypt.

The price of natural gas supplied by the two export exchanges will be determined
by a price formula linked to the price of Brent crude oil.
Deloitte estimates that the total revenue from Tamar and Leviathan gas sales to Egypt could reach $15 billion
.

Thanks to the recent launch of several new natural gas projects in Mediterranean countries, Egypt has received support from the World Bank in its efforts to become a regional oil and gas trading hub
.