Israel’s Delek Drilling said it has completed testing of a subsea natural gas pipeline to Egypt, but it did not begin commercial sales by the end of June as it had initially hoped.
Delek Drilling and its partner Noble Energy signed a landmark deal early last year to export $15 billion in natural gas from Israeli offshore fields Tamar and Leviathan to a customer in Egypt.
Israeli officials called it the most significant deal to emerge since the neighbors made peace in 1979.
Delek Drilling Deputy CEO Yossi Gvura told Reuters in early June that they hoped to start selling small quantities of gas to Egypt by the end of the month, but the company said July 2 exports had not yet begun.
Due to the forecast demand for gas in Israel over the summer, the company expects commercial sales to Egypt to begin only when the Leviathan Field comes online by year-end 2019.
Delek and Noble have agreed to buy into the EMG gas pipeline between Ashkelon in Israel and El-Arish in Egypt to transport the gas supplies. Now that the technical examination of the pipeline is complete, Delek expects to close the EMG deal by Aug. 31.
Recommended Reading
Forum Energy Signs MOU to Develop Electric ROV Thrusters
2024-03-13 - The electric thrusters for ROV systems will undergo extensive tests by Forum Energy Technologies and SAFEEN Survey & Subsea Services.
Spate of New Contracts Boosts TechnipFMC's Subsea Profits
2024-04-30 - TechnipFMC's operational profits are growing as the company heightened its focus on “quality” subsea orders, which earned $2.4 billion for the first quarter.
AI Advancing Underwater, Reducing Human Risk
2024-03-25 - Experts at CERAWeek by S&P Global detail the changes AI has made in the subsea robotics space while reducing the amount of human effort and safety hazards offshore.
Exclusive: Cost-effective Benefits of Extracting from Mature Assets
2024-05-13 - Baker Hughes' well abandonment leader Bart Joppe details the importance of extracting resources from mature assets and the company's approach to managing a well, in this Hart Energy Exclusive interview.
Tech Trends: AI Increasing Data Center Demand for Energy
2024-04-16 - In this month’s Tech Trends, new technologies equipped with artificial intelligence take the forefront, as they assist with safety and seismic fault detection. Also, independent contractor Stena Drilling begins upgrades for their Evolution drillship.