Egypt and Israel are negotiating deals that may mean the sale of $60 billion in Israeli natural gas to liquefaction plants in Egypt. Executives said this week they expect to finalize the agreements by year-end.
For Israel, shipping its gas to Egypt will be faster than building LNG plants.
“From these LNG plants in Egypt, Israeli gas can reach European and Asian markets,” said David Shrem, a Tel Aviv-based portfolio manager. The deals “are the first significant ones for regional exports.”
Noble Energy and Israel’s Delek Group expect to send gas to Egypt through pipelines under the Mediterranean Sea.