Israel’s Ministry of Energy announced on Tuesday that negotiations over a natural gas supply agreement with Egypt have reached an “advanced stage,” though some issues remain unresolved.
Israel signed its largest-ever export deal in August to supply Egypt with up to $35 billion worth of natural gas from the Leviathan field.
After marathon discussions this week between the Leviathan partners and Israel’s Ministry of Energy and Infrastructure, a final agreement was reached that will allow the export of 130 BCM (billion cubic meters) to Egypt for $35 billion, the largest export agreement in the country's history.
Israel's Energy Minister Eli Cohen has said he was holding up approval for the gas deal to secure better commercial terms for the Israeli market, according to Reuters. On Tuesday, he confirmed that talks were still ongoing.
As part of the agreement, the Leviathan Partners, NewMed Energy, Chevron and Ratio Petroleum Energy, will commit to a guaranteed price for the domestic economy, to give priority to the Israeli economy, so that if there are any malfunctions in the Tanin, Karish or Tamar fields, it will transfer gas directly to the local economy.
One of the issues that senior Washington officials have been dealing with is ensuring that US energy major Chevron, which owns 39.66% of Leviathan, remains committed to the deal.
The partners are expected to make an investment decision to expand the Leviathan field infrastructure withing two weeks, once the Israeli government announces its final approval.
