Israel Unlikely to Export to Egypt this Year

The gas export contract between Tamar Project, off shore Israel and Dolphinus Holdings, a little-known Egyptian company, remains incomplete, according to Isramco's annual filing report to the Tel Avis Stock Exchange (TASE). Isramco is the biggest shareholder in Tamar with 29.50%.

The company said that there is no certainty that gas sales will begin, a situation not previously reported. According to the filing, the two sides are still negotiating the contract. It was reported mid-March that the start of the gas transmission through the EMG pipeline was delayed by three months owing to faults in the unused undersea pipeline.

Tamar has contract to supply Egypt gas on an interruptible basis, with first gas by the end of June. That contract might become a firm contract during 2020. The firm option is for up to 3.5bn m/yr but there is a lot of gas now being produced in Egypt which itself has bccome a gas exporter once more.

The Tamar field will have very little to export to Egypt this summer as it is then running at full capacity to meet power genreration demand. But Israel has no storage capacity and no reserves for any event of emergency.