The overall investment in the pipeline to convey natural gas for exports to Jordan will cost above $69.5 million, the Ministry of Natural Infrastructures, Energy and Water Resources Natural Gas Authority estimates. On Monday, the Natural Gas Authority Council published its decision on the subject of arrangements for financing natural gas exports to neighboring countries. The Council decided that the exporter will foot the bill for any conveyance infrastructures.
The Council also decided that the exporters will pay costs for any duplication in infrastructure where it is conveying gas to Israeli consumers as well as to neighboring countries.
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The Council’s decision comes as a new reality has taken hold in Israel’s energy sector over the past year on the subject of natural gas exports with the topic of a national natural gas pipeline gaining ground. Only last week an agreement was signed between Leviathan partners and the Jordanian Electric Power Company (JEPCO) to sell 3 BCM of gas annually for 15 years for a total of 45 BCM.
Minister of Energy Silvan Shalom said, “Natural gas exports to neighboring countries through a pipeline opens up new horizons for our natural resources and increasing revenue from them. Exports will bring us closer together with our neighbors and allow us to cooperate with them in the long term bringing about an improvement in the situation of all the countries in the region.”
Sources in the energy industry believe that the Leviathan partners will build a floating offshore terminal for natural gas for use in Israel and Jordan. The pipeline will continue through the Jezreel Valley to Bet Shean and over the border to Jordan. However, no decision has yet been taken regarding the final route of the pipeline to Jordan.
Published by Globes [online], Israel business news – www.globes-online.com