Egypt will start receiving natural gas from the fields of the Israeli Delek Drilling Company in the Mediterranean for the Egyptian Dolphinus Holding Company, through a pipeline linking Ashkelon and Al-Arish in Egypt to transport gas supplies, by next January.
A senior government source told Daily News Egypt that the technical inspection of the pipeline has been completed and reversed to allow gas to transfer from Israel to Egypt, contrary to how it was working these past few years.
The private sector, represented by the Dolphin Holding Company, was the contractor for Delek to purchase the gas, and Egypt would receive a transfer fee for using its land and the national natural gas transportation network.
The source pointed out that Dolphinus has the right to sell gas to the private sector locally after obtaining a licence from the Gas Regulatory Authority or export it through liquefaction plants.
He stressed that Egypt has succeeded in imposing its conditions announced in 2014 – the settlement of international arbitration cases and achievement of best economic return to Egypt – and is now able to export gas through Israeli territory.
Besides, international arbitration obtained by the Mediterranean Gas Company was dropped and obtained $288m from the Egyptian Natural Gas Holding Company(EGAS), according to the ruling of the International Chamber of Commerce (ICC) in Geneva.
This was announced after completing the procedures for the acquisition of Noble, Delek, and Egyptian East Gas companies of the Mediterranean Gas Company, which owns a pipeline linking southern Israel to the Sinai desert.
The source added that the agreement was reached due to the strength of Egypt’s position and Israeli demand because gas produced from the Mediterranean Sea has no way out for export except through Egypt, the national gas network, and liquefaction plants.
In December 2015, the ICC issued a decision mandating EGAS and the Egyptian General Petroleum Corporation to pay compensation to the Eastern Mediterranean Gas Company with $ 288m, and $1.7bn to Israel Electric Company, following Cairo’s decision to suspend gas export to Tel Aviv in April 2012.