US $430m for Egypt energy security

Adam Boehler, Chief Executive Officer of the US International Development Finance Corporation, has announced a commitment to provide $430m in insurance to advance energy security in Egypt by rehabilitating a natural gas pipeline and transporting natural gas from fields offshore in Israel.

The announcement was made at the November 22 – 23 Investment for Africa Forum 2019 in Egypt during a signing ceremony that included Boehler and US Ambassador to Egypt Jonathan Cohen as well as Egyptian Prime Minister Moustafa Madbouly and Minister of Investment and International Cooperation Sahar Nasr.

The insurance will enable Noble Energy Inc. of Houston, Texas to restore the 90-kilometer EMG Pipeline running from the coastal city of Ashkelon, Israel and under the Mediterranean Sea to its destination in Al-Arish, Egypt.

It will also support the transport of 3 trillion cubic feet of natural gas over 15 years.

The insurance contracts were signed after Noble Energy and its partners achieved financial close for the project.

“Strengthening energy security—which bolsters trade, supports investment and improves quality of life—is critical to ensuring lasting prosperity and stability in Egypt,” said Boehler. “This project will help the country meet growing demand for reliable, low-cost energy in order to fuel sustained economic growth and create opportunities that have a stabilizing impact in Egypt and across the region.”

“Egypt is a strategic partner to the United States. We’re excited to support this critical investment in the country by an American company which will not only spur job creation and economic growth but also help provide reliable and affordable energy for Egyptians and others throughout the region,” said Cohen.

“Egypt welcomes this massive private sector investment and looks forward to the economic impact it will have for the Egyptian people,” said Nasr.

“The Dolphinus gas sales contracts and the EMG acquisition underpin delivery of natural gas from the Tamar and Leviathan fields in Israel into Egypt represent a major milestone toward Egypt’s goal of becoming a regional energy hub. Both these transactions and the support from the US provide further confidence in the long term export market and growing cash flow from these premier assets,” said J. Keith Elliott, Noble Energy’s Senior Vice President, Offshore.

The project will advance energy security in Egypt and support the country’s efforts to grow its economy by exporting gas to parts of Europe and other global markets.

The pipeline being restored had initially been used to transport natural gas from Egypt to Israel but ceased operations in 2012.