Launch of Israel's Nitzana pipeline with Egypt delayed to H1 2028 over disputes
Arab Finance: The start-up date of the planned 600 million cubic feet per day (cfd) Nitzana pipeline, set to boost Israeli natural gas exports to Egypt, has been pushed to the first half (H1) of 2028 due to ongoing disagreements over cost-sharing and volume allocation, according to the Middle East Economic Survey (MEES).
The expected date pushback was due to disputes between Chevron-led partners in Israel's Leviathan and Tamar gas fields and the country's Natural Gas Authority.
The setback will cap Israeli gas exports to Egypt at 1.6 billion cfd from the second half (H2) of 2026, hindering Egypt's efforts to substitute costly liquefied natural gas (LNG) imports with more affordable pipeline gas amid surging domestic demand and falling production.
The proposed Nitzana pipeline, which was expected to come online this year, is a 65-kilometer onshore connection between Israel's southern gas network and Egypt's network in eastern Sinai.
With a planned capacity of 600 million cfd, it aims to expand Israel's export capacity to Egypt to 2.2 billion cfd.
© 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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