Oil major Chevron plans to invest around $235 million in pipelines to export fuel from Israel’s natural gas fields. Chevron and its partners are assisting Israel to develop its natural gas fields.
It is reported that Chevron’s partner in the Leviathan and Tamar fields will develop a fresh subsea pipeline and expand some of its existing ones.
The partners have signed an agreement with Israel Natural Gas Lines (INGL). Furthermore, INGL will develop and connect a pipeline between the Israeli coastal cities of Ashdod and Ashkelon. The pipeline will pave the path for the partners to supply 7 billion cubic meters of gas annually to Egypt.
Furthermore, the development is expected to be worth $228 million. The gas companies will pay 56 percent of the fresh pipeline and also support INGL for the development.
The Leviathan and Tamar fields are located in the Mediterranean Sea. Furthermore, energy companies have boosted efforts towards gas investments in the eastern part of the Mediterranean Sea in the last ten years.
Chevron is the operator of both the Leviathan and Tamar fields and holds 39.7 percent stake and 32.5 percent respectively.
Chief Executive Officer Yossi Abu at Delek, told the media, “The fact that we are paying most of the costs involved in building the new pipeline reflects the security and the confidence we have in continuing to increase exports to the countries of the region.”
The pandemic has hampered the oil and gas segment like any other segment.