Natural gas from Egypt began flowing to Israel through a pipeline for the first time today, state-owned utility Israel Electric Corporation said.
This follows an agreement signed in 2005 with the East Mediterranean Gas Company (EMG) for the annual supply of 1.7 billion cubic metres of Egyptian natural gas over 20 years.
In the first stage, the natural gas will be delivered to power plants in the cities of Tel Aviv and Ashdod.
Israel Electric estimated that over 20% of the electricity to be produced in Israel in the coming decade will be based on Egyptian natural gas.
EMG built and operates the subsea pipeline that delivers the natural gas from Egypt to Israel. It is a joint venture whose investors include Egyptian businessman Hussein Salem and Israeli businessman Yosef Maiman.
EMG is the second supplier of gas to Israel, the first being the Yam Thetis consortium, which delivers gas from a field off Israel's southern coast.
© Upstream 2008
