Israel’s Energy Minister Yuval Steinitz has forecast that his country will begin gas exports to Egypt in November from its offshore fields, further cementing commercial and political ties.

He told reporters during a visit to Cairo that export volumes will eventually reach 7 billion cubic metres per annum under a $15 billion agreement between Israel's Delek Drilling, US-based partner Noble Energy and Egypt’s Dolphinus Holdings.

Israeli and Egyptian officials described the export agreement signed last year as the most significant deal to emerge since the neighbours made peace in 1979.

Bilateral ties have strengthened under Egyptian President Abdel-Fattah el-Sisi, who has set himself the task of turning Egypt into a regional gas hub by making use of its well-established energy infrastructure.

Israeli supplies will come from the offshore Tamar and Leviathan fields. Steinitz said testing of a gas pipeline from Israel to Egypt has been completed.

The minister said in January that Israeli exports to Egypt were expected to reach over 7 Bcm per annum over 10 years, with about half the volumes expected to be used for Egypt's domestic market and the rest to be liquefied for re-export.

Egypt has spare liquefaction capacity through its liquefied natural gas plants at the Mediterranean ports of Idku and Damietta. At the same time, Delek Drilling and Noble are working on modifying their export contract with Dolphinus so that they can reach peak supply in two years, said the Israeli company's chief executive Yossi Abu.

The supply deal calls for shipments reaching the 7 Bcm per annum target by 2020. Half of that is on an interruptible basis, meaning that supply can vary during peak hours or adverse conditions.

Abi said the Leviathan partners are seeking to make the entire supply non-interruptible, while taking longer to reach the target.

Meanwhile, Cypriot Energy Minister Georgios Lakkotrypis also said in Cairo that a plan to develop the offshore Aphrodite gas field will be finalised within the next few weeks. It will include extending a gas pipeline to Egypt.

Cyprus expects initial gas production from Aphrodite to begin between 2024 and 2025.

The field was first discovered in 2011, but development has been delayed as stakeholders Noble, Delek Drilling and supermajor Shell renegotiated a production-sharing agreement with the government.

Eastern Mediterranean countries including Cyprus, Israel and Egypt, as well Italy, have formed a partnership to deliver more natural gas to Europe and transform the region into a major energy hub.

Weekly

Israel prepares for start of gas exports to Egypt