(Bloomberg) – Egypt and Israel have said they could build an undersea pipeline connecting the two countries, as they seek to collaborate on the fuel’s export to Europe

The pipeline would connect Israel’s huge Leviathan field to Egypt’s liquefied natural gas plants, the countries energy ministries said on Sunday Egypt said the two sides will work on a government framework for the pipeline

The announcement comes as Eastern Mediterranean countries step up investment in offshore gas fields Egypt seeks to become a major hub for LNG exports to Europe, where demand is increasing as governments switch to dirtier fossil fuels such as coal and petroleum

The new pipeline would allow Israel to export more gas to Egypt It can currently send 7 billion cubic meters per year through the EMG pipeline that connects the Egyptian Sinai Peninsula

The latest deal came when Oil Minister Tarek El-Molla paid a rare visit to Israel for an Egyptian official He met with his counterpart, Yuval Steinitz, and Prime Minister Benjamin Netanyahu They discussed the collaboration with other countries to convert ships to use natural gas instead of oil El-Molla also visited the Palestinian city of Ramallah

Chevron Corp and other companies separately invest hundreds of millions of dollars to help move Israeli gas to Egypt

Egypt is increasing exports from its own fields, including Zohr An oil tanker arrived at the Damietta LNG terminal to load a cargo of super-refrigerated fuel, the state-run Middle East news agency reported on Sunday

The load marks the return to operation of the country’s second LNG plant after an eight-year hiatus Damietta’s restart has been repeatedly delayed due to a dispute over gas supply

Egypt has spearheaded the establishment of the Eastern Mediterranean Gas Forum The group, which also includes Cyprus, Greece, Israel, Italy, Jordan and the Palestinians, aims to strengthen the cooperation between gas producers and transit countries in the region Turkey, which has increased tensions by exploring for gas in disputed waters, is not yet included


Global news – FI – Israel and Egypt could build gas pipeline as they watch European market

Source: https://www.bloombergquint.com/business/egypt-oil-minister-to-visit-west-bank-israel-for-gas-talks-kley3iwk