The developers of the Leviathan gas field offshore Israel signed on Tuesday a letter of intent with Dolphinus Holdings to supply gas to Egypt.
The gas would be transported using the transmission system of Israel Natural Gas Lines (Natgaz) to Ashkelon and from there to the local market in Egypt using the exising pipeline operated by East Mediterranean Gas, Israel’s Delek said in a statement.
The deal includes several commercial conditions for the proposed potential transaction, which will serve as a basis for negotiating the binding agreement, Delek added.
Under the deal, the Leviathan partners would supply up to 4 billion cubic meters per annum for a period of 10-15 years.
According to Delek, the price of gas is similar to other contracts and is linked to the cost of Brent oil and includes a “floor price”.
The Leviathan project is being led by Noble Energy and Delek through its subsidiaries Delek Drilling and Avner Oil and Gas.