Gas donor: Minister of Energy Yuval Steinitz has signed permits for natural gas exports for the next 15 years • "Extremely significant economic cooperation"
Whale gas reservoir // Photo: Noble Energy
Minister of Energy Yuval Steinitz yesterday signed the permits required for natural gas exports from Israel to Egypt, following the approval of the Competition Authority and other related approvals and just before the natural gas was flowed from the whale reservoir.
The approvals were granted after all the professional procedures for examining the subject were completed: the approval of the Competition Authority, and after consultation with the Concentration Committee and in accordance with its recommendation.
Exports of natural gas will be made from whale and tamarind holdings and intended for use in the local economy in Egypt or for the export of liquid gas through the liquefaction facilities located in Egypt. The gas will be flowed from the KZA (Europe-Asia pipeline) complex in Ashkelon to the Egyptian connection point in El Arish.
Tamar and Whale's contracts were signed in February 2018, and the approval can be exported for a maximum of 60 billion cubic meters of whale holdings and 25 billion cubic meters of Tamar's holdings for a period of 15 years. The revenue from both contracts is expected to reach $ 15 billion, half of which will reach state coffers.
The contract for the whale, which is expected to take effect in the coming days, is determined by a predetermined supply quota throughout the contract years. On the other hand, the transducer gas will be sent to Egypt on the basis of supply surplus, which means the priority will be given to Israel. From the end of 2021, Tamar will also be able to flow gas according to a fixed cap.
In addition, Minister Steinitz approved the transfer of control of the PRIMA license to EMG, as well as the instructions for using the PRIMA transmission system connecting Ashkelon to Al-Arish for the export of natural gas from Israel to Egypt.
Minister Steinitz said that "the export of gas to Egypt from Leviathan and Tamar reservoirs has been a very significant economic cooperation between Israel and Egypt since the peace treaty was signed between the states. It is a historic milestone for the State of Israel."