Chevron and Israeli pipeline operator will launch new gas pipeline towards Egypt

Chevron announced on Tuesday that it had signed a contract with Israel's pipeline operator, a state-owned company, to begin construction of the Nitzana pipeline. The pipeline will transport gas from Leviathan to Egypt.

Nitzana will ease Egypt's energy crisis. Egypt has spent billions on the importation of liquefied gas. This is part of an effort to increase Israeli gas exports into the Arab World's largest nation.

The owners of Leviathan, a natural gas field located off Israel, signed a deal worth $35 billion last month to export gas to Egypt. Leviathan is owned by NewMed Chevron Ratio Energies. It has gas reserves in the region of 600 billion cubic meters.

Chevron reported that the Nitzana route would transport approximately 600 million cubic foot of natural gas each day once construction is completed in three years. This will bring Israel's export capacity to Egypt up to more than 2.25 billion cubic feet every day. (Reporting and editing by Emelia Sithole Matarise and Bernadettebaum; Shadia Nasralla, Stephanie Kelly)

(source: Reuters)