Israel/Egypt Gas MoU.Cairo Cairo, city, Egypt Cairo (kī`rō), Arab. Al Qahirah, city (1996 pop. 6,789,479), capital of Egypt and the Cairo governorate, NE Egypt, a port on the Nile River near the head of its delta, at the boundary of ancient Upper and and Tel Aviv Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest were on June 30 due to sign a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. (MoU) on the long-delayed project for Egypt to supply natural gas to Israel by marine pipeline. The MoU will be followed by a commercial agreement, due to be concluded in the second half of July, between Israel Electric Co. (IEC (International Electrotechnical Commission, Geneva, Switzerland, www.iec.ch) An organization that sets international electrical and electronics standards founded in 1906. It is made up of national committees from over 60 countries. IEC - International Electrotechnical Commission ) and an Egyptian-Israeli consortium East Mediterranean Gas (EMG EMG abbr. electromyogram Electromyography (EMG) A diagnostic test that records the electrical activity of muscles. ), a 75:25 venture between Egyptian General Petroleum Corp. (EGPC EGPC Egyptian General Petroleum Corporation ) and the private Israeli company Merhav. (See survey of Egypt serialised in Vol. 62, January 2004, Nos. 1-4). Under the terms of the MoU, Egypt will supply 7 BCM/year to Israel for a period of 15 years through a pipeline running from El-Arish in Egypt to Ashkalon in southern Israel. Total project costs are estimated at about $2.5 bn. The scope has been considerably reduced in size since it was originally mooted. First gas deliveries are due in the third quarter of 2006. In a recent press release, the Israeli Ministry of Infrastructure said: "The agreement is part of a plan to move away from coal and oil to gas-fired power stations. Volumes [of Egyptian natural gas] could be increased at a later date". Tel Aviv is planning a $120m expansion of the national gas grid. At present there are no plans for IEC to be supplied directly with natural gas from discoveries made in offshore Gaza by BG. However, discussions have been ongoing for some time between the US/Israeli Yam Tethys consortium - which operates fields off Israel's southern coast and sells the gas to IEC - and BG, about Yam Tethys acquiring gas volumes from the Gaza Marine offshore field operated by a BG-led consortium. Talks are understood to have looked both at Yam Tethys simply buying the gas and at the consortium taking an equity in the field. |
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