Chevron (CVX.N) announced that it has stopped exporting natural gas through a significant underwater pipeline between Israel and Egypt. It is now providing gas through a different pipeline that runs through Jordan.
The decision to stop shipments through the East Mediterranean Gas (EMG) pipeline was made as violence between Israel and terrorists in the Gaza Strip grew more intense.
“Following the instruction by the Ministry of Energy to shut-in production at the Tamar Production Platform and the security situation in the south of Israel, all exports to Egypt have been re-routed via the FAJR pipeline,” a representative for the ministry said.
The EMG pipeline links to an onshore pipeline in El-Arish, Egypt, about 10 kilometers north of Gaza. It originates in the southern Israeli town of Ashkelon.
The major conduit between Egypt and the offshore gas field managed by Chevron is a 90-kilometer pipeline. Operator Chevron, NewMed Energy (NWMDp.TA) of Israel, and Ratio Energies (RATIp.TA) are all members of the Leviathan partnership.
Chevron’s proposal to export gas through the Arab Gas route, an alternate route that connects Leviathan to Jordan and Egypt, was confirmed by Israel’s energy ministry in a statement to Reuters.
Three days after hostilities broke out following a surprise attack by Hamas terrorists in the Gaza Strip on Israel, Israel halted production at the Tamar gas project off its southern coast on Monday.
Separately, sources in the energy sector claimed that although supplies to the local market are given priority, the volume of gas exported from Israel’s enormous Leviathan field to Egypt has been marginally decreased; it is still near the quota.
According to the sources, Leviathan has been sending more goods to Egypt than was promised in the sales agreements for several weeks.
“Every molecule we export, we first check it is not needed in the Israeli market,” according to a source.
