Chevron halts gas exports via EMG pipeline from Israel to Egypt

Chevron (CVX.N) has halted natural gas exports through a major subsea pipeline between Israel and Egypt and is supplying gas via an alternative pipeline through Jordan, industry and government sources said on Tuesday.

The decision to halt exports via the East Mediterranean Gas (EMG) pipeline comes as fighting intensifies between Israel and militants in the Gaza Strip.

The EMG pipeline runs from the southern Israeli town of Ashkelon, located some 10 kilometres north of Gaza, to El-Arish in Egypt, where it connects to an onshore pipeline.

The 90-kilometer pipeline is the main link between the Chevron-operated Leviathan offshore gas field and Egypt.

Chevron decided to divert the gas due to security concerns as a result of the military conflict, two industry sources said.

Israel's energy ministry confirmed in a statement to Reuters that Chevron had requested to export gas through an alternative pipeline that links Leviathan to Jordan as well as Egypt, known as the Arab Gas Pipeline.