Israeli and Egyptian Partners Take Control of Key Gas Pipeline

(Bloomberg) -- Companies developing Israel’s largest natural gas fields and their Egyptian partner have taken control of a pipeline connecting southern Israel and Egypt’s Sinai desert, removing one of the last obstacles to a major export contract between the countries.

Shares in the East Mediterranean Gas subsea pipeline were transferred to Israel’s Delek Group Ltd., Houston, Texas-based Noble Energy Inc. and Egypt’s East Gas Go., according to a Tel Aviv Stock Exchange statement on Sunday.

Delek, Noble and Egypt Sign $518 Million EMG Pipeline Deal (2)

A landmark contract signed in February 2018 between Israel and Egypt had been held up while the three companies struck a deal to buy out partners in the EMG pipeline that were mired in legal fights with the Egyptian government. Noble and Delek, which own pieces of the Tamar and Leviathan reservoirs in Israeli waters, plan to start servicing the Egyptian market at the beginning of next year.

©2019 Bloomberg L.P.