Category: Middle East

Trade Table Turns- Israel Signs Deal to Supply Egypt With Gas

IsraelNo one could have imagined that Israel would ever be in a position to sell gas to Egypt. This is because the country was purchasing gas from Egypt just two years ago. However, the trade was ended because of repeated bombing of the pipeline. Political pressures also played a role in influencing the country’s decision to cut off Israel’s supply of the commodity.

Two years later, both countries have signed a deal for Egypt to get gas from Israel’s gas field. The deal is being facilitated by Israel’s Noble Energy of Housto and Egypt’s Union Fenosa. It is believed that this latest agreement may trigger a much larger reserve. Tamar is only one of Israel’s offshore gas fields. The other one is Leviathan which is twice as large as Tamar.

Tamar is estimated to have approximately 10 trillion cubic feet of gas. This is enough gas to sustain Israel and provide them with the option of exporting the excess. Of the 10 trillion cubic feet of gas that Tamar is estimated to contain, Egypt is set to get 2.5 trillion of that amount.

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