Latest news with #BlueOceanEnergy
Al-Ahram Weekly
3 days ago
- Business
- Al-Ahram Weekly
Egypt's gas deal with Israel extension of 2019 agreement: Petroleum ministry - Economy
Egypt has not signed a new agreement to import gas from Israel, Moataz Atef, a spokesman for the Ministry of Petroleum and Mineral Resources, said, noting that the deal is an extension of an existing agreement from 2019. Atef said the extension is part of a two-pronged strategy to boost domestic gas and petroleum production while diversifying energy sources to strengthen Egypt's role as a regional energy hub. His comments were the first official response since Israeli firm NewMed Energy announced what it called a 'landmark deal' on Thursday. The consortium said the agreement would export 130 billion cubic metres of gas to Egypt through 2040, valued at an estimated $35 billion. Atef stressed the figure was not final, citing a flexible pricing formula tied to market conditions. The extended contract, he said, would guarantee a stable supply and support Egypt's energy security during 'a period of rapid geopolitical change.' 'It is in our best interest. If we need the gas, that's fine; if not, that's also fine,' he said. 'The priority is strategic insurance.' He noted Egypt had also signed a gas export agreement with Cyprus in February 2025 and was pursuing other eastern Mediterranean deals, aiming to balance domestic needs with surplus for export. The extension was signed with Blue Ocean Energy, which buys gas from Israel's Leviathan reservoir for Egypt. Gas from Leviathan began flowing to Egypt shortly after production started in January 2020, and under the new terms, is expected to continue until 2040 or until contracted volumes are met. Follow us on: Facebook Instagram Whatsapp Short link:
Roya News
4 days ago
- Business
- Roya News
'Israel', Egypt sign record $35 billion gas deal
Partners in 'Israel's' Leviathan offshore natural gas field have signed a $35 billion agreement to increase gas exports to Egypt. The deal, which is the largest export agreement in 'Israel's' history, will see approximately 130 billion cubic meters (bcm) of natural gas supplied to Egypt through 2040. This transaction comes at a time when diplomatic relations between Cairo and Tel Aviv are at their lowest point in years due to the ongoing Gaza aggression. Yossi Abu, CEO of NewMed Energy, which holds 45.34% of the Leviathan reservoir, said the deal will fund the necessary infrastructure expansion to ensure a stable domestic gas supply until at least 2064. The deal is also expected to generate hundreds of millions of shekels in state revenue from royalties and taxes. Egypt's domestic gas production has been in sharp decline, falling from a peak of 71 bcm in 2021 to just 45 bcm in 2024, largely due to reduced output from its primary Zohr field. This energy deficit has led to expensive liquefied natural gas (LNG) imports and planned rolling blackouts that have sparked public anger in the country. The new agreement, signed with Egypt's Blue Ocean Energy (BOE), is set to eventually triple the amount of gas 'Israel' exports to its neighbor annually. The implementation of the deal is a phased process that is contingent on significant infrastructure projects, including a third pipeline to the Leviathan platform and new transmission pipelines to Egypt. The first phase, involving 20 bcm of gas, is expected to begin in the first half of 2026, while the second phase, for the remaining 110 bcm, will follow the completion of the broader Leviathan expansion project. Legal experts argue that a pipeline central to the deal, which runs through Palestinian maritime zones, breaches international law because it was constructed without the consent or compensation of the Palestinian Authority. Furthermore, the Leviathan field, operated by a consortium including NewMed Energy, Chevron, and Ratio Energies, has been identified as a "carbon bomb" with the potential to emit 1.06 billion tons of carbon dioxide over its lifetime. The operator has also faced scrutiny for attempting to halt air quality monitoring near its platform, a move reversed only after public and environmental pressure .
Yahoo
5 days ago
- Business
- Yahoo
NewMed signs $35bn natural gas supply deal with Egypt's Blue Ocean Energy
NewMed Energy, alongside partners in the Leviathan project, has signed an agreement for the sale of natural gas from the Leviathan reservoir to Egypt. The contract, signed with Blue Ocean Energy, an existing customer of Leviathan, is valued at approximately $35bn (Dh128.54bn) and involves the transfer of around 130 billion cubic metres (bcm) or 4.59 trillion cubic feet of natural gas. This deal represents the most significant export transaction in Israel's history and underscores the strategic importance of the Leviathan gas field since its discovery. The gas sales to Egypt are projected to continue until 2040 or until the agreed quantities are fully supplied. Production and export to Egypt began in January 2020, with current supplies totalling approximately 60bcm under contract, and an annual volume of 4.5bcm, plus additional spot sales. NewMed Energy CEO Yossi Abu said: 'This is the most strategically important export deal to ever occur in the eastern Mediterranean and strengthens Egypt's position as the most significant hub in the region. 'Since it begun production, Leviathan has brought many benefits both domestically and internationally, and the reservoir's expansion has been NewMed's key priority for years. This deal, made possible by our strong regional partnerships, will unlock further regional export opportunities, once again proving that natural gas and the wider energy industry can be an anchor for collaboration.' The existing export agreement with Egypt, established in 2019, will be superseded by this new arrangement upon completion of the contracted 60bcm, expected in the early 2030s. To date, around 23.5bcm of natural gas has been sold from Leviathan to the Egyptian market. The new deal is structured in two stages, with the first concerning the sale of 20bcm and the second the sale of an additional 110bcm. The latter is contingent upon the completion of the Leviathan expansion project and the construction of a new pipeline to Egypt via Nitzana. The first stage is set to commence in the first half of 2026, following the completion of a third pipeline to the production platform and the Ashdod-Ashkelon transmission pipeline, increasing annual sales to Egypt by 2bcm. The second stage will begin after the Leviathan expansion project's completion, which is expected to boost Israel's natural gas production by 30% and increase the reservoir's annual production capacity to approximately 21bcm. Total gas exports for the second stage are estimated at 110bcm, with annual variations, culminating in a total annual quantity of roughly 12bcm from Leviathan to Egypt. The pricing of the natural gas is primarily linked to Brent oil prices, and the total sale is expected to generate around $35bn in revenue for all partners involved in the reservoir. The finalisation of this deal is a critical step towards the final investment decision for the Leviathan expansion project (phase 1B), which includes drilling additional wells, expanding subsea systems, upgrading processing facilities and potentially laying a fourth pipeline. "NewMed signs $35bn natural gas supply deal with Egypt's Blue Ocean Energy" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Al-Ahram Weekly
5 days ago
- Business
- Al-Ahram Weekly
Israel inks $35 bln deal to export 130 bcm of natural gas to Egypt until 2040 - Economy
Israeli NewMed Energy has signed a landmark deal to export 130 billion cubic metres (bcm), or 4.59 trillion cubic feet (tcf), of natural gas, worth around $35 billion, to Egypt until 2040. The new deal, signed with Blue Ocean Energy (BOE) — which buys natural gas from the Leviathan reservoir for Egypt — marks the largest export deal in Israel's history and the most significant agreement since the discovery of natural gas reservoirs in the country. Under the terms of the new deal, the export of gas to Egypt is expected to continue until 2040 or until all contract quantities are fulfilled, a NewMed press release said. The Leviathan reservoir began exporting natural gas to Egypt shortly after commencing production in January 2020. To date, it has provided around 23.5 bcm of natural gas to the Egyptian market, with a contracted annual volume of 4.5 bcm (0.16 tcf) through Blue Ocean Energy, alongside spot quantities sold on an interruptible basis. The original export agreement with Egypt, signed in 2019, is set to conclude once the total contracted quantity of approximately 60 bcm is sold, which is projected to occur in the early 2030s. The new agreement will replace this existing contract and is divided into two stages. Stage one involves the sale of 0.7 tcf (approximately 20 bcm) of gas. This stage is expected to take effect in the first half of 2026, following the completion of two key projects designed to enhance the production and transportation capacity: 1. The connection of a third pipeline from the Leviathan reservoir to the production platform, increasing gas production to over 0.5 tcf (approximately 14 bcm) per year; 2. The enhancement of the Ashdod-Ashkelon transmission pipeline, currently being carried out by INGL, which will increase the natural gas transmission capacity in the EMG pipeline by an additional 0.07 tcf. Once the first stage comes into effect, it will allow the sale of 0.7 tcf of gas to Egypt annually. Stage two involves an additional 110 bcm (3.88 tcf) of gas. This stage will commence after the completion of the Leviathan expansion project and the construction of a new transmission pipeline from Israel to Egypt via Nitzana. This Leviathan expansion project will significantly boost the annual natural gas production capacity in Israel by approximately 30 percent, bringing it to around 21 bcm (0.74 tcf). The new pipeline via Nitzana will help accommodate increased export capacities from Israel to Egypt. The total gas exports for stage two will amount to approximately 110 bcm (3.88 tcf) in varying annual quantities, which will raise the total sales from Leviathan to Egypt to an annual quantity of around 0.42 tcf (approximately 12 bcm). Thus, the overall export of approximately 130 bcm (4.59 tcf) of natural gas, based on a pricing formula primarily linked to Brent crude oil prices, is projected to generate around $35 billion in revenue for all partners involved in the reservoir. The finalization of this deal will facilitate a final investment decision for the Leviathan expansion project. In February, the Leviathan said it plans to increase annual production capacity to approximately 21 bcm, with potential future expansions. The expansion plan includes drilling additional wells, enhancing subsea systems, expanding processing facilities on the platform, and potentially laying a fourth pipeline between the reservoir and the production platform. Leviathan is the largest natural gas field in the Mediterranean Sea and one of the largest in the world. According to the latest prospective resources report, the Leviathan reservoir contains approximately 600 bcm (21.2 tcf), and production is expected to continue until at least 2064, according to discounted cash flow projections. Follow us on: Facebook Instagram Whatsapp Short link:
The National
5 days ago
- Business
- The National
Egypt signs $35bn deal to import natural gas from Israel
Egypt has signed a $35 billion agreement to import Israeli natural gas as the most populous Arab nation looks to secure long-term gas supply agreements to meet its growing energy needs. The deal – the largest export agreement signed by Israel and the biggest since the discovery of the natural gas reservoirs in the country – includes an aggregate export of about 130 billion cubic metres of natural gas from the Leviathan gasfield to the Egyptian market, NewMed Energy, one of the partners in the gasfield, said in a statement on Thursday. Under the terms of the deal, signed by NewMed, its partners and Blue Ocean Energy – an existing off-taker of natural gas from Leviathan for Egypt – the supply of gas to Egypt is expected to continue until 2040, or until all of the contract quantities are fulfilled. 'This is the most strategically important export deal to ever occur in the Eastern Mediterranean and strengthens Egypt's position as the most significant hub in the region,' said Yossi Abu, chief executive of NewMed Energy. 'This deal, made possible by our strong regional partnerships, will unlock further regional export opportunities, once again proving that natural gas and the wider energy industry can be an anchor for collaboration.' Vital supply The supply of Israeli gas is critical for Egypt to maintain and increase the pace of its economic growth. The International Monetary Fund this year upgraded Egypt's economic growth forecast for the 2024-2025 fiscal year to 3.8 per cent. The Central Bank of Egypt said in May that it expected real gross domestic product to expand by 4.3 per cent during the fiscal year ending 2025, after a slowdown in growth to 2.4 per cent in 2023-2024 fiscal year. Israel's gas exports to Egypt were cut off during the 12-day Iran-Israel war in which the two sides also attacked each other's energy infrastructure. The Egyptian government said at the time that it was prioritising the energy requirements of power stations instead of the production units, due to the peak summer season. Before supplies were halted, Egypt imported about one billion cubic feet of gas per day from Israel, accounting for about 13 per cent of Egypt's total daily consumption of around 7.5 billion cfd. Of that total, about 3.8 billion cfd is produced locally. Building on deal Leviathan, which is off Israel's Mediterranean coast with reserves of about 600 bcm, began exporting natural gas to Egypt shortly after it commenced production in January 2020. Currently, the reservoir supplies a total contract gas quantity of about 60 bcm, with an annual volume of 4.5 bcm to Egypt through Blue Ocean Energy. Egypt also receives Spot quantities (interruptible daily sales), which are offset against the total contracted quantity. The latest deal builds on the original export agreement with Egypt, signed in 2019, which is expected to end in 2030 once the full contracted quantity has been supplied from the Israeli reservoir. So far, Leviathan has sold about 23.5 bcm of natural gas to the Egyptian market, NewMed Energy said. Phased approach The deal will eventually replace the existing agreement and is divided into two stages. Stage one of the deal, involving the sale of 20 bcm, is expected to take effect in the first half of 2026. The remaining contracted supply of about 110 bcm will be completed in the second stage, which will begin 'only after completion of the Leviathan expansion project and the construction of the new transmission pipeline from Israel to Egypt via Nitzana', NewMed Energy said. The completion of the deal will also pave the way for a final investment decision for the Leviathan expansion project. As part of the preparations, last February, the Leviathan partners submitted an update to the gasfield's development plan to increase annual production capacity to about 21 bcm, with a possibility of further expansion to 23 bcm of natural gas a year. 'Since it began production, Leviathan has brought many benefits, both domestically and internationally, and the reservoir's expansion has been NewMed's key priority for years,' Mr Abu said.
