Friday 17 January 2020
I wrote – Shaima Hefzy:
Last Wednesday, the Egyptian Ministry of Petroleum announced that it would start receiving Israeli natural gas in preparation for its liquefaction through liquefaction stations in Egypt, then re-export it again.
Masrawy provides the most prominent 10 information about the liquefaction stations in Egypt, which is a major reason for this agreement.
1 – The natural gas discovered in any country needs to be converted to a liquid in order to be loaded on ships and exported, if there is no possibility to transport it through pipes extending to the target markets.
2- With the discovery of natural gas in Egypt, Israel and Cyprus, there was a need for liquefaction stations capable of converting this gas and facilitating the process of exporting it.
3 – Israel has discovered large quantities of gas that it cannot drain, and wants to export it, and there is currently no way for it, other than the gas pipeline, from which it was importing gas from Egypt.
4 Egypt has two liquefaction stations in Edko and Damietta, which is an advantage not available in the Eastern Mediterranean countries that seek to export the gas discovered on their coasts.
5 – These units have been out of work in recent years, due to a lack of domestic production of gas, and Egypt has turned into a net importer for it, in order to bridge the deficit between production and consumption.
6- The East Mediterranean gas pipeline has been reformed and modified to allow the passage of gas in both directions, so that Israeli gas will be pumped into the pipeline, to be liquified in Egypt and exported to Israel.
7 – In September 2018, Egypt signed an agreement to establish a direct marine pipeline project, so that natural gas would be transported from the Cypriot “Aphrodite” field to liquefaction stations in Egypt, and to re-export it to various markets.
8 – Egypt will also receive natural gas from Israel after an agreement signed by the Israeli and Egyptian companies to import gas from the Israeli “Leviathan and Tamar” fields of gas at about $ 20 billion, for liquidation and re-export.
9 – Egypt in return receives fees for transit and liquefied gas.
10 – This would enable Israel to transfer quantities of its natural gas to Europe via the Egyptian LNG plants, and would also serve the plan to transform Egypt as a regional gas hub.