Egypt, Israel near major gas deal

Egypt and Israel are reportedly finalising a deal that could mean the sale of $60 billion in Israeli natural gas to liquefication plants in Egypt.

US-based Noble Energy and units of Israel’s Delek Group Ltd plan to deliver as much as 6.25 trillion cubic feet of gas from Israeli offshore fields to LNG facilities in Egypt’s Damietta port and the coastal town of Idku, according to a Bloomberg report.

Executives told Bloomberg that they expect to finalise the agreements, which will bring billions of dollars a year of export revenue to Israel, by year-end.

Israel's Tamar and Leviathan offshore oil fields , discovered in the past few years, offer Israel enough gas to last for decades which is why the country is now looking to export surplus.

With LNG facilities within easy reach of European and Asian markets, Egypt looks to be the export partner of choice.