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. 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.

Source: The North Africa Journal February 20, 2018 12:11 UTC