Israel To Export Natural Gas to Egypt in Billion Dollar Deal
Tamar gas field off the shore of Israel in the Eastern Mediterranean Sea (© 2014 EPA)
In what would have been considered unthinkable just a few years ago, Israel and Egypt have struck a deal whereby Israel will sell at least $1.2 billion of natural gas from Israel’s Mediterranean Tamar field to private industrial customers in Egypt.
Another odd twist is that the gas will be shipped through a ten year old pipeline built originally to bring the commodity from Egypt to Israel.
Sources in Israel say the deal could ultimately be worth three times the amount agreed to, as Egypt is presently incapable of tapping its own signifiant natural gas reserves and thus dependent on outside sources to meet rising domestic demand.