Israel exports natural gas to Egypt in a $15 Billion deal

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Israels Ground Breaking Deal

Until recently Israel and Egypt tended to have a security-focused relationship. Earlier this week the nations made a $15 billion deal to have Israel export natural gas to Egypt. The deal is for 64 billion cubic meters of natural gas, which is great for both of the countries economies, especially Israel. Israels' state treasury will benefit immensely using the money to build Israels social welfare, education, and health. However, there are still some obstacles for the deal to work smoothly. 


There was an issue where Israeli electricity providers wanted to be compensated by Egyptian companies but nothing has been said about the issue and whether or not this deal resolves the arbitration. The biggest problem is how the natural gas is actually going to be transported. The EMG pipeline is experiencing damages at the time and may not be a possible way to transport the gas. The pipeline was used to export oil from Egypt to Israel in the past. Delek, which is the company exporting the natural gas, says that they will begin "talks" with EMG soon on whether the pipeline can be used or not. Sources also say that they might be able to use an already existing pipeline that connects the Israeli transmission system with the Jordanian one.This Deal is also very beneficial to the stock market, in particular the Tel-Aviv stock exchange. After the details of the deal emerged, the oil & gas index raised 19 percent. It is not clear if this recent agreement will create more deals in the future but it is good to be optimistic.

Comments

  1. Seth WeilandFebruary 21, 2018 at 4:41 PM

    I had no idea that there are pipelines that transport gas that far. That is pretty amazing, and really shows the importance of the gas that is being bought and transported to the people. That is a very expensive way of getting the product to someone, especially if the pipe is damaged and the gas can not be delivered. There are countries counting on this gas, and huge money to be made, so I am sure that the repair of this pipeline is of the utmost importance. I thought this post was very interesting, I had no idea that there were deals being made of this magnitude around the world.

    ReplyDelete
  2. UnknownFebruary 22, 2018 at 11:10 AM

    That is a lot of money, and its great that both countries will benefit from it. Do they know how much money the pipeline would potentially bring in? Will they profit?

    ReplyDelete
  3. Matt KlahrFebruary 22, 2018 at 3:55 PM

    This deal can be a huge help for Egyptian citizens because it will bring down their natural gas prices tremendously. Are the electrical companies you mentioned the same companies that are creating this potential natural gas deal?

    ReplyDelete
  4. Mary SpaethMarch 19, 2018 at 12:19 PM

    Israel to Egypt is a pretty short distance. Compare it to the natural gas pipelines between Canada and the US!

    ReplyDelete
  5. UnknownMarch 20, 2018 at 9:11 AM

    I think it's great that Israel is making ventures to help fund public programs, I'm interesting in seeing how this deal will improve both countries involved.

    ReplyDelete
  6. Gabrielle PorterApril 25, 2018 at 11:44 AM

    seems as if a lot of areas in the world are having issues with electricity and power sources. Even though this has been an issue for years around the world it doesn't seem like it will ever end.

    ReplyDelete

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