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Ammon News - AMMONNEWS - Turning the tables on the region's natural resource flow, Israeli gas will soon surge southward through the Egyptian pipeline that for several years provided gas to Israel – but was the victim of nonstop saboteurs in the Sinai region.

The developers of the 282-billion cubic meter Tamar reservoir, which has been supplying gas to Israelis since March 2013, have signed a bid to sell 2.5 b.cu.m. annually to the Egyptian firm Dolphinus Holdings Limited, the Delek Group reported to the Tel Aviv Stock Exchange on Sunday morning. This gas surplus sold to the Egyptian firm from Israel's local supply will serve private industrial consumers beginning already in 2015, according to the partners.

The move will revitalize Egypt's East Mediterranean Gas Company (EMG) pipeline that for several years carried gas from Egypt to Israel. In 2008, EMG began supplying Israel with about 40 percent of its natural gas provisions, until saboteurs began thwarting the flow through Sinai pipeline explosions. Following 14 months of such attacks, the Egyptian government formally terminated the agreement between EMG and Israel in April 2012.

At the Tamar basin, Noble Energy holds 36 percent of the basin. Delek Drilling and Avner Oil Exploration each own 15.625%, while Isramco owns 28.75% and Dor Gas owns 4%.

The neighboring 621-billion cubic meter Leviathan gas reservoir, located about 130 km. west of Haifa, is expected to begin flowing in 2017. Noble Energy owns 39.66% of Leviathan, while Delek Drilling and Avner Oil – both subsidiaries of the Delek Group – each own 22.67% and Ratio Oil Exploration holds 15%.

Sunday's announcement joins a number of other regional agreements and understandings that the Tamar and Leviathan partners have signed with Israel's neighbors.

In September, the Leviathan reservoir partners signed a letter of intent to sell 45 billion cubic meters of natural gas to Jordan’s National Electric Power Company over a 15-year period.

Empty liquefaction plants in Egypt have also become an attractive option for Israeli gas. The British Gas Group signed a non-binding letter of intent with the Leviathan partners that could entail a 15-year supply of 105 b.cu.m. of natural gas to its Idku plant. Meanwhile, in early May, the Tamar reservoir partners signed a letter of intent with Spanish firm Union Fenosa, for the provision of 71 b.cu.m. to that company’s Egyptian liquefaction facility in Damietta.

In January, the Leviathan partners signed their first export deal for the larger basin – a $1.2b. sales agreement with the Palestine Power Generation Company. According to the agreement, PPGC will buy around 4.75 b.cu.m. of gas over 20 years, to fuel a future power plant in Jenin with a 200-megawatt capacity.

A month later, the Tamar reservoir partners signed a $500 million deal to provide 1.8 b.cu.m. of gas to the Jordanian firms Arab Potash and Jordan Bromine over 15 years, beginning in 2016, to power their Dead Sea facilities.

*Jerusalem Post