Chevron Eyes Cut-Price Israel-Egypt Pipeline For Leviathan Export Boost

11 Mar 2022 Issue: 65 / 10 By: Peter Stevenson

Chevron is eying a new Israel-Egypt onshore pipeline to send more Leviathan gas to Egypt. This may be supplemented by FLNG. But a direct 400km offshore pipeline linking Leviathan with Egypt LNG facilities has fallen out of favor.

US major Chevron is pressing ahead with plans to build a 60km onshore pipeline that would connect Israel’s southern gas network with that of Egypt’s in the Sinai Peninsula, MEES learns. Chevron and its partners at Israel’s two producing gas fields, 22.7tcf Leviathan and 10.5tcf Tamar, are currently waiting to receive permits to greenlight the construction of a $100-150mn pipeline that would be able to deliver 6-7 bcm/year of gas (an implied average of 580-680mn cfd) direct to Egypt.

Since the start-up of Leviathan at the end of 2019, output from Israel’s two producing fields has been capped at well below their combined 24bcm/y (12bcm/y each) capacity due to limited sales options. For 2021 combined output was 19.5bcm (MEES, 25 February), some 4.5bcm below capacity. Of this, some 4bcm (just under 400mn cfd) headed to Egypt. (CONTINUED - 1388 WORDS)