US provides US$430mn in insurance to natural gas project in Egypt

refinery 2059775 640Adam Boehler, CEO of the US International Development Finance Corporation (DFC), has announced a commitment to provide US$430mn in insurance to advance energy security in Egypt by rehabilitating a natural gas pipeline and transporting natural gas from fields offshore in Israel

The announcement was made at the Investment for Africa Forum during a signing ceremony that included Boehler and the US Ambassador to Egypt Jonathan Cohen as well as Egyptian Prime Minister Moustafa Madbouly and Minister of Investment and International Cooperation Sahar Nasr.

The insurance will enable Noble Energy of Houston, Texas to restore the 90-km EMG pipeline running from the coastal city of Ashkelon, Israel and under the Mediterranean Sea to its destination in Al-Arish, Egypt. It will also support the transport of three tcf of natural gas for over 15 years.

The project will advance energy security in Egypt and support the country’s efforts to grow its economy by exporting gas to parts of Europe and other global markets. The pipeline being restored had initially been used to transport natural gas from Egypt to Israel but ceased operations in 2012.

“Strengthening energy security, which bolsters trade, supports investment, and improves quality of life, is critical to ensuring lasting prosperity and stability in Egypt,” said Boehler. “This project will help the country meet the growing demand for reliable, low-cost energy in order to fuel sustained economic growth and create opportunities that have a stabilising impact in Egypt and across the region.”

Under the terms of the project, the gas will be purchased by Dolphinus Holdings, a gas trading company.

J. Keith Elliott, Noble Energy’s senior vice-president, Offshore, said, “The Dolphinus gas sales contracts and the EMG acquisition underpin the delivery of natural gas from the Tamar and Leviathan fields in Israel into Egypt and represent a major milestone toward Egypt’s goal of becoming a regional energy hub.”

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