By: AGBI

Egypt reportedly plans to build a $400 million pipeline to increase natural-gas imports from Israel.

The pipeline will be constructed inside Egypt’s territory by the Egyptian Natural Gas Company, the Saudi Asharq Business website said, quoting two unidentified Egyptian government officials.

Egypt approved the project following an agreement with NewMed Energy, the operator of Israel’s Leviathan gas field, as domestic demand in Egypt continues to rise.

NewMed Energy said in early August it would expand gas exports to the North African Arab country under an amended agreement with Egypt’s state-backed Blue Ocean Energy.

Under the new terms, annual gas exports could surge from the current 4.5 billion cubic metres to as much as 12.5 billion cubic metres by 2029, depending on infrastructure expansion.

“Egypt intends to build a new pipeline in the last quarter of this year to receive the additional gas supplies from Israel,” Asharq Business said.

Egypt, once a natural-gas exporter, has become a net importer due to rapid growth in domestic use and a decline in local production.

Prime Minister Mostafa Madbouly said last month that new projects and the awarding of contracts to foreign oil majors would boost Egypt’s gas output and allow it to become an exporter again by 2027.