According to the “Mees” publication, which specializes in energy affairs, the deal may include the export of 80 billion cubic meters of gas during the period between 2031 and 2038, with the possibility of automatically extending it until 2043 in the event that the field’s production concession is renewed.
“Isramco” owns a 28.75% stake in the “Tamar” field, while “Mubadala Energy” owns 11%. It is expected that the rest of the partners, led by Chevron, Tamar Petroleum, Union Energy and Dur Gas, will join in converting the memorandum into a final agreement.
The value of gas is estimated at about $20 billion, with an average price of approximately $7 per million British thermal units, with the adoption of a pricing mechanism linked to Brent crude, in addition to the application of the “pay or receive” condition adopted in previous contracts.
Supplies are scheduled to begin in limited quantities in 2031, before gradually rising with the expiration of current contracts to supply Israeli gas to Egypt.
“Mees” confirmed that the memorandum is still non-binding, as its implementation requires signing a final agreement, obtaining Israeli government approvals and export licenses, suggesting that the decision be postponed until after the Israeli parliamentary elections expected next October.
The deal reflects Egypt’s continued reliance on Israeli gas to bridge the gap between local production and consumption, and also strengthens its position as a regional center for Eastern Mediterranean gas trade, while allowing the re-export of surplus quantities through the Idku and Damietta stations to global markets, especially Europe.
For its part, the Israeli newspaper “Calcalist” described the memorandum of understanding as a first step towards one of the largest gas export deals in the history of Israel, noting that its completion remains dependent on the joining of all partners and the completion of regulatory approvals.
