Tamar Partners Start Negotiation for Gas Export to Egypt Via Existing Pipeline

The Tamar Partners started negotiations with Dolphinus Holdings to export gas produced in Israel to Egypt through the existing gas pipeline operated by East Mediterranean Gas. The parts signed a letter of intent on Friday. 

‘The Letter of Intent includes several commercial conditions for the proposed transaction, which will serve as a basis for negotiating the Binding Agreement. Supply under the Binding Agreement will be of 250,000 MMBtu per day for a period of 7 years,’ reads a note released by Delek Group on Monday.

According to the document, the gas supply will be on an interruptible basis, but Tamar Partners committed to a minimum of 5 bcm over a period of 3 years, expecting Dolphinus Holdings to buy a significant share of the minimum quantity.

The Tamar Partners are Noble Energy Mediterranean (36.00%), Isramco Negev 2 Limited Partnership (28.75%), Avner Oil Exploration (15.625%), Delek Drilling (15.625%), Dor Gas Exploration (4.00%).