Egypt, Israel Seal $15 bln Gas Deal

Israeli Delek Drilling company announced that it signed a $15 billion agreement to export gas to Egypt, a deal described as most significant since 1979.

The agreement reflects the deepening strategic ties between the two countries as well as Cairo’s ambitions to become a regional energy hub.

Israeli Prime Minister Benjamin Netanyahu welcomed the agreement as “historic”.

Netanyahu said the deal would “strengthen [Israel’s] security, our economy, and also strengthen our regional relationships”.

Egypt already has extensive gas liquefaction facilities on the Mediterranean — used to create more easily exportable liquefied natural gas — which have stood largely idle since the country’s 2011 revolution led to a fall in its gas production.

Imports from Israel will help meet Egypt’s voracious appetite for gas, which is used to generate 70 per cent of domestic electricity supplies.