US provides $430m insurance for gas pipeline project in Egypt
The US International Development Finance Corporation is to provide $430 million in insurance for a project to rehabilitate a natural gas pipeline in Egypt and transport natural gas from fields offshore in Israel.
The insurance will enable Texas-headquartered Noble Energy to restore the 90km EMG Pipeline running from the coastal city of Ashkelon, Israel, and under the Mediterranean Sea to its destination in Al-Arish, Egypt. It will also support the transport of three trillion cubic feet of natural gas over 15 years. The insurance contracts were signed this week after Noble Energy and its partners achieved financial close for the project.
Under the terms of the project, the gas will be purchased by Dolphinus Holdings, a gas trading company. The pipeline being restored had initially been used to transport natural gas from Egypt to Israel but ceased operations in 2012.
