Energean has agreed to export gas from Israel to Egypt

By Harry Floudopoulos

An important agreement that also has a geopolitical dimension was recently concluded by Energean. It is an MOU (Memorandum of Understanding) signed with the Egyptian EGAS and concerns the export of up to 2 billion cubic meters of natural gas from Israel to Egypt.

According to the detailed information to the London and Tel Aviv stock exchanges (Trading and Operational Update) in which the management of the group proceeded yesterday, the agreement has a duration of 10 years and will start initially with exports of 1 billion. sq.m. annually.

The quantities of the developing Karis and Northern Karis deposits have already been contracted in their entirety, so in order to secure the specific quantities, Energean looks forward to the successful outcome of the new offshore drilling research project, which starts in March and has several targets that can reach up to 110 billion cubic meters of gas in total. The beginning is made by drilling at the “Athena” target in Block 12 with a target of 21 billion cubic meters of natural gas and with a probability of geological success of over 80%.

In case of discovery, the development of the field will be done with Energean Power, the first FPSO gas in the history of the Mediterranean, which is expected to “get a job” in Israel with the start of production from Karis in the third quarter of the year.

Energean has consistently targeted gas exports through Israel, having already signed a Letter of Intent for quantities of up to 2 billion cubic meters. per year with DEPA, while four years ago it had proposed in Cyprus the supply of up to 1 billion sq.m. with a pipeline that would connect the two countries, in a project that was rejected by the Republic of Cyprus, as it has chosen a liquefied gas monopoly at this stage. Egypt is considered a key country in both the production and import of natural gas from neighboring countries, as it has the Damietta and Indku liquefaction terminals, which can be used for exports to European markets.

It is worth mentioning here that, speaking in October at the Athens Investment Forum, the CEO of the Energean group Mathios Rigas had pointed out that among the solutions that countries like Greece must look for in dealing with energy crises such as today is the conclusion of long-term contracts with countries such as Israel and Egypt. These are, obviously, countries with which there are very good geostrategic relations and which not only have significant quantities of natural gas but also prices that are dramatically lower than the current ones in which our country and, in general, Europe imports gas from pipelines as well as liquefied gas.