Israel Natural Gas Lines Negotiates Setting Up Infrastructure for Exporting Gas to Europe

Israeli government-owned natural gas transmission company Israel Natural Gas Lines Ltd. (INGL) is in negotiations with Athens-based gas infrastructure developer IGI Poseidon SA to set up the infrastructure for exporting natural gas to Europe.

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INGL announced the negotiations in a filing to the Tel Aviv Stock Exchange on Friday. Poseidon, a joint venture by Greek gas company DEPA SA and Italian company Edison SpA, is the owner of the planned Eastern Mediterranean (EastMed) gas pipeline, aimed at bringing natural gas from the Middle East to European markets.

With a length of 2,000 kilometers, EastMed is intended to connect Israeli natural gas field Leviathan and Crete field Aphrodite with Italy.

INGL also announced it is in advanced deliberations on a planned partnership with Tel Aviv-listed gas company Delek Group and Texas-based Noble Energy Inc., the majority holders of Leviathan and Tamar, two of Israel’s largest natural gas fields, to export gas to Egypt. Delek announced it has signed a $15 billion deal with Egyptian company Dolphinus Holdings Ltd. in early 2018.

In its filing, INGL reported a net profit of NIS 56 million (approximately $15.4 million) for 2018, 30% compared to 2017. Revenues were up 7.6% reaching NIS 595 million (approximately $164 million) in 2018, however, its financing cost rose from NIS 114 million (approximately $31.4 million) in 2017 to NIS 158 million (approximately $45.5 million) the following year.

INGL also reported it is examining a possibility to connect a bus terminal in Israeli central town Kfar Saba with natural gas resources to support gas-operated public buses in the area.