(P&GJ) — Egypt is advancing plans to construct a new natural gas pipeline, valued at roughly $400 million, to handle additional imports from Israel, according to Agenzia Nova.
The project will be located entirely within Egypt’s territory and is expected to be managed by the state-owned Egyptian Natural Gas Company (Gasco) once engineering plans are completed.
Funding for the pipeline will come from the Egyptian government, while NewMed Energy—the Israeli company developing the Leviathan gas field—will extend infrastructure to the border to connect with the new system, as reported by Agenzia Nova.
Earlier this month, Cairo and NewMed Energy updated their existing supply deal to include an additional 130 billion cubic meters of natural gas through 2040. The new framework outlines two phases: an initial delivery of about 20 billion cubic meters, followed by up to 110 billion cubic meters in later stages, contingent on infrastructure upgrades and investment.
Officials say the expanded pipeline capacity will bolster Egypt’s role as a regional gas hub, enabling the country to re-export Israeli gas as liquefied natural gas (LNG) to both European and Asian markets.