Egypt’s Collaboration with the Israeli Company EAPC in the Oil and Gas Supply Chain
The Eilat Ashkelon Pipeline Company, also known as the Europe Asia Pipeline Company EAPC [1], manages several crude oil and refined oil product pipelines, most notably the Eilat–Ashkelon pipeline in Israel. EAPC also owns two maritime oil terminals and oil storage facilities [2].
The East Mediterranean Gas Company (EMG) [3], authorized by the Egyptian government to export gas to Israel, owns and operates the Arish–Ashkelon pipeline [4]. In 2005, a memorandum of understanding was signed between Israel and Egypt regarding gas imports from Egypt through EMG via the Arab Gas Pipeline. EMG was granted a special status allowing it to purchase natural gas from Egyptian companies and sell it to countries along the eastern Mediterranean coast as part of the Arish–Ashkelon pipeline. Gas supply began in July 2008.
In 2019, Israel’s fuel transit company, the Europe Asia Pipeline Company (EAPC), and EMG reached an agreement allowing EAPC’s infrastructure to be used to transport gas to Egypt. This agreement stipulated that gas would be transferred through EMG’s 90-kilometer submarine pipeline, which is connected to Israel’s gas network, to Egypt’s gas network near Arish. Under this contract, EMG will pay EAPC based on the volume of natural gas exported through the pipeline and will operate the terminal throughout the export period. It is expected that this pipeline will transfer seven billion cubic meters of natural gas annually.
Company Profile of EMG:
- Name: East Mediterranean Gas Company
- Year Established: 2000
- Ownership:
- 28%: Mediterranean Gas Pipeline Ltd, owned by Egypt’s “Evsen Group of Companies” [5].
- 5%: Merhav-Ampal Energy Holdings (Israel)
- 5%: Ampa – a U.S.-Israeli company controlled by Yossi Maiman
- 25%: PTT Public Company Ltd (Thailand) [6].
- 12%: European Midstream Initiative and European Grid Infrastructure – EMI-EGI LP (Europe)
- 10%: Egyptian Natural Gas Holding Company (EGAS)
Other Collaborations with Egypt
Since 2008, Egyptian gas has been supplied to power plants in Israel, comprising 18% of Israel Electric Corporation’s fuel portfolio. In December 2009, a contract was signed to supply natural gas to another Israeli power plant for 12.5 billion cubic meters, which began in 2013 and generates around 800 megawatts of electricity [7]. Following a $10 billion deal in September 2016, Egypt’s energy supply contract with Israel was aligned with the Jordan National Electric Power Company’s agreement to supply 45 billion cubic meters of natural gas over 15 years to Israel’s eastern neighbors [8].
After Mohamed Hosni Mubarak’s resignation as President of Egypt in February 2011, one of the allegations against him and his family involved corruption through the sale of discounted gas to Israel [9]. However, this charge was dismissed after Abdel Fattah el-Sisi came to power in Egypt [10].
#Egypt
#EAPC
#EMF
Footnotes:
[1] Europe Asia Pipeline Company
[2] EAPC Company Profile
[3] East Mediterranean Gas Company
[4] EMG on Wikipedia
[5] Evsen Group
[6] World Bank Snapshot on EMG
[7] Calcalist Article
[8] Jerusalem Post
[9] Ynet Article
[10] Ynet Article
