Israel’s NewMed Energy reports steady profits as rockets fly but gas still flows to Israel, Jordan and Egypt
NewMed Energy, the Israeli company with stakes in the East Mediterranean gas fields of Tamar and Leviathan offshore Israel and with LNG export ambitions, has published its annual results showing pipeline gas continued to flow to the Israeli domestic market and to Egypt and Jordan even after the outbreak of war in Gaza in October 2023.
Egyptians set up joint venture company in Saudi Arabia to attract more investment in East Med gas and LNG
The Egyptian Natural Gas Holding Co. (EGAS), the government-run energy company with stakes in Egypt’s two LNG export plants and other gas field assets, has established a subsidiary in Saudi Arabia to help attract more investment.
Egypt's Ministry of Petroleum said that the Saudi unit had been set up by EGAS with initial capital of 2 million Saudi riyals ($533,000).
The Egyptians said in their statement that EGAS would own 80 percent of the venture called “Modern Gas Saudi Arabia” and explained that it would be part of the Egypt’s strategy for offshore expansion in the East Mediterranean in cooperation with other Arab nations such as the United Arab Emirates.
EGAS has various stakes, direct and indirect, in Egypt’s expansive oil and gas assets and the two LNG export plants, Damietta and Idku, located east of the port city of Alexandria.
ADNOC-BP deal
Abu Dhabi National Oil Company (ADNOC) and UK major BP said in Mid-February 2024 that they planned to form a joint venture in Egypt that would initially focus on natural gas and incorporate Egyptian concession stakes held by BP.
That joint venture is expected to be formed in the second half of 2024 and will be 51 percent owned by BP and 49 percent by ADNOC.
The BP-ADNOC Egyptian joint venture was originally planned to be the second phase of cooperation between the two companies in the East Med gas and LNG province after the planned acquisition of a 50 percent stake in Israeli gas producer NewMed Energy.
Negotiations on the proposed NewMed agreement for BP and ADNOC started in March 2023, though have now been officially suspended.
As part of the agreement for Egyptian expansion and energy investment by ADNOC, BP will contribute its interests in three development concessions, as well as exploration agreements in Egypt to the new joint venture.
ADNOC will make a proportionate cash contribution which can be used for future growth opportunities.
Gas fields
This is the first major natural gas deal for BP under new Chief Executive Murray Auchincloss.
Both companies said that this new joint venture partnership would enhance Egyptian energy security and the economic potential of the region’s most populous Arab country.
The natural gas concession to be included in the Egyptian joint venture include BP’s 10 percent in the Shorouk block containing Egypt’s huge Zohr gas field.
BP’s 100-percent owned North Damietta interests are also included along with BP’s 50-percent stake in the North El Burg concession with the undeveloped Satis field.
Three other exploration concession included are North El Tabya, Bellatrix-Seti East and the North El Fayrouz block.
Chevron re-starts production from Tamar gas field offshore Israel and Gaza after over one-month closure
Chevron Corp., the US energy major and global LNG producer, has re-started production from the Tamar natural gas field supplying Israel, Jordan and Egypt from East Mediterranean platforms and pipelines following its closure for more than a month by the Israeli government in the wake of attacks against Israeli civilians by Hamas terrorists from the Gaza Strip.
Egypt plans huge natural gas drilling programme with energy majors that will help boost LNG output
Egypt said it was planning to drill around 35 new exploratory natural gas wells in the Eastern Mediterranean and the Nile Delta by 2025 with $1.8 billion in investments in joint ventures with oil and gas majors and with a view to increasing liquefied natural gas production.
Israeli LNG and gas project developer NewMed Energy decides to invest in third Leviathan field pipeline
NewMed Energy, the Israeli natural gas company and LNG project developer in the East Mediterranean, has taken a positive final investment decision for a third natural gas pipeline for production wells in the Leviathan gas field amid LNG export and domestic supply plans.
SDX Energy of UK says multiple offers received for Egyptian natural gas assets are being evaluated
SDX Energy plc, the UK-based oil and gas exploration and production company, said it had received multiple offers for its Egyptian natural gas assets and was considering them.
Italian utility SNAM expects nation’s fourth LNG terminal at Piombino to start operations at end of May
SNAM Chief Executive Stefano Venier said the natural gas grid and terminals owner would begin commercial operations by the end of May at Italy’s newest and fourth LNG import terminal at the Port of Piombino in Tuscany.
Israel’s NewMed Energy makes LNG development decision after halting merger with UK’s Capricorn
NewMed Energy, a stakeholder with US major Chevron in the large Leviathan natural gas field offshore Israeli, has approved budgets for 2023 including gas field development to provide feed gas for a floating LNG project.
Chevron and Eni make ‘significant’ gas discovery in Eastern Mediterranean to boost Egyptian LNG expectations
Italian energy company Eni and US major Chevron Corp. have made a “significant” gas discovery in the Eastern Mediterranean Sea offshore Egypt in a follow up for Eni on its huge Zohr gas field that enabled the Egyptians again to become LNG exporters.
TotalEnergies brings Lebanon closer to being offshore energy producer in East Med LNG and pipeline hub
TotalEnergies Chairman and Chief Executive Patrick Pouyanné has met Lebanese Minister of Energy and Water Walid Fayad at the French major’s Paris headquarters to mobilize drilling teams for the Block 9 offshore resource that will make Lebanon an energy producer in what is becoming the Eastern Mediterranean LNG and pipeline gas hub.
