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Israel, Egypt Gas Cos Near Deal to Control EMG Pipeline

  • Delek, Noble, Egyptian partner said in talks to buy 37% stake
  • Deal would end key obstacle to $15B Israel-Egypt gas contract
LNG Natural Gas
Photographer: Tomohiro Ohsumi/Bloomberg
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The companies developing Israel’s largest natural gas fields and an Egyptian partner are close to a deal that would give them control of the pipeline to Egypt, eliminating some of the outstanding legal disputes that have impeded progress on a $15 billion export contract.

Israel’s Delek Drilling LP, U.S.-based Noble Energy Inc. and an Egyptian company are in advanced talks to buy 37 percent of East Mediterranean Gas Ltd., which operates the undersea pipeline that connects to Egypt’s Sinai peninsula, people familiar with the matter said. The buyout would give the companies the largest voting bloc in EMG and they expect to reach an agreement with other stakeholders to control and operate the pipeline, the people said.