Chevron and Israeli partners plan to invest $235 million in pipelines to export the fuel to Egypt

Jerusalem, January 21 - Neftegaz.RU. Chevron, as the operator of Leviathan and Tamar gas fields, entered into an agreement with Israel Natural Gas Lines (INGL) for the provision of transmission services of gas from the Tamar reservoir and Leviathan reservoir.

The Leviathan and Tamar fields located in the Mediterranean Sea off the coast of Israel are jointly owned by Chevron and Delek Drilling.
Chevron holds a 39.7% stake in Leviathan and 32.5% of Tamar. Delek owns 45.3% of Leviathan and 22% in Tamar.

Delek Drilling and INGL will construct a transmission system between the Israeli cities of Ashdod and Ashkelon.

• will pay 56.5 % of the overall cost of construction of the Ashdod-Ashkelon pipeline, which is estimated at $228 million
• they will pay $8 million, for the expansion of the Dor-Hagit and Sorek-Nesher pipeline sections

Delek said

• In addition to the expansion of other lines, it will enable the partners to send as much as 7 billion m3 of gas annually to Egypt.
• The partners previously agreed to export 44 billion m3 of gas to Egypt over a period of 8 years.
• The 1^st gas flows should begin between July 2022 and April 2023.

Chevron acquired Noble Energy in a $5-billion deal in 2020.
As a result it took over its interests in Leviathan and Tamar.

Chevron became the 1^st energy major to enter the Israeli market with the completion of its acquisition of Noble Energy last October, which has stakes in Israeli offshore gas fields.

The takeover, which is one of the largest energy deals since the beginning of the coronavirus, gave Chevron the vital access to Noble Energy’s low-cost, proven reserves along with its cash-generating offshore assets in Israel, especially the flagship Leviathan gas project.
This, in turn, boosted the company’s base in the Mediterranean.