Israel Completes Subsea Pipeline to Boost Leviathan Gas Exports to Egypt by 30%
Israel's National Natural Gas Lines Company (Natgaz) has completed the construction of a 45-kilometer subsea pipeline connecting Ashdod to Ashkelon. This pipeline links the Leviathan gas field's reception station in Ashdod to the EMG pipeline near Ashkelon, which transports gas to facilities in El-Arish, Egypt. The project supports a major gas export agreement signed last summer between Leviathan partners - Chevron, NewMed Energy, and Ratio - and Egypt's Blue Ocean Energy, valued at approximately $35 billion over about ten years.
The new pipeline will increase the volume of gas transported to Egypt by about 2 billion cubic meters annually, raising the flow from 6.5 BCM to 8.5 BCM, a 30% increase. Consequently, Leviathan's export capacity to Egypt will grow from 4.7 BCM to 6.7 BCM per year, a 43% rise. This expansion follows recent upgrades completed about six weeks ago that raised Leviathan's production capacity to 15.8 BCM annually by adding a third pipeline to the production platform.
NewMed Energy confirmed that all conditions for increasing gas supply to Blue Ocean Energy have been met, with export volumes expected to rise by around 40% compared to current sales, alongside additional spot sales. NewMed Energy CEO Yossi Abu stated that the completion of the Ashdod-Ashkelon pipeline removes a significant bottleneck, enabling the largest gas export deal in Israel's history to proceed, reducing transportation costs and allowing the partners to meet growing domestic and export demand.
The pipeline project cost about 1 billion shekels and was completed roughly four years behind schedule due to various delays, including the prolonged Middle East conflict. In parallel, Israel's Ministry of Energy announced the launch of its fifth tender for natural gas and oil exploration in Israel's economic waters, covering five blocks totaling approximately 7,600 square kilometers. This tender was initially planned for February but was postponed due to the outbreak of the Second Iran War.
