OPIC Covers Israel-Egypt Pipe Revamp
The US government’s Overseas Private Investment Corporation (Opic), which finances projects led by American firms in developing countries, is to provide political risk insurance for a project in Egypt.
Opic said December 13 it had approved a $430mn in political risk insurance for Texas-based producer Noble Energy. Its statement explained that the cover will support the restoration, operation and maintenance of an Egyptian gas pipeline that could supply up to 10% of Egypt's future gas demand. Neither Opic nor Noble Energy named the pipeline concerned.
But it is expected to be the EMG pipeline which connects the coastal city of Ashkelon in Israel to El Arish in northern Sinai (Egypt). Although no longer in service, in September 2018 Noble and its Israeli partner Delek Drilling announced that they will buy a 39% stake in the EMG pipeline in order to flow some of their future gas production from their Tamar and Leviathan fields offshore Israel into Egypt.
The $430mn cover was part of an overall $1.3bn package announced by Opic that also included up to $350mn of financing for Indian solar and wind projects.