GLOBES
Leviathan partners and BG close to $30b Egypt gas deal
by Hedy Cohen
December 27, 2015

The Leviathan partners and British Gas (BG) are negotiating the final details of a contract for exporting Israeli natural gas to Egypt, and will sign it in the coming weeks, senior sources in the gas companies said today. According to the sources, the plan is to sign the contract before Shell Oil completes its acquisition of BG next month. Representatives of the companies in Israel have been holding marathon meetings with BG representatives in London in recent weeks. The parties signed a letter of intent in June 2014, under which the Leviathan gas reservoir would supply 105 BCM of gas to BG’s gas liquefaction facility in Idku, Egypt over 15 years. The value of the huge deal, involving the export of one sixth of the Leviathan gas reserves, was estimated at $30 billion, and was designed to make it possible to finance Leviathan’s development. The parties have not yet signed a final agreement, due to regulatory problems, mainly in Israel. The entry into the picture of Shell Oil, which intends to acquire BG for $70 billion, raised the question of whether such a deal could take place in the future. READ MORE