U.S. commits $430m in insurance to Egypt natural gas project
JOHANNESBURG - The United States International Development Finance Corporation (DFC) has announced it will provide $430 million in insurance to advance energy security in Egypt by rehabilitating a natural gas pipeline and transporting natural gas from fields offshore in Israel.
The insurance will enable U.S. company Noble Energy to restore the 90-kilometre EMG Pipeline running from Israel's coastal city of Ashkelon and under the Mediterranean sea to its destination in Al-Arish, Egypt, the state department's Bureau of Public Affairs said in a statement through its Africa Regional Media Hub.
It will also support the transport of three trillion cubic feet of natural gas over 15 years.
“Strengthening energy security—which bolsters trade, supports investment, and improves quality of life—is critical to ensuring lasting prosperity and stability in Egypt,” the Africa Regional Media Hub quoted DFC chief executive Adam Boehler as saying at the signing ceremony at the Investment for Africa Forum in the capital Cairo.
“This project will help the country meet growing demand for reliable, low-cost energy in order to fuel sustained economic growth and create opportunities that have a stabilizing impact in Egypt and across the region.”
The project will advance energy security in Egypt and support the country’s efforts to grow its economy by exporting gas to parts of Europe and other global markets. The pipeline being restored had initially been used to transport natural gas from Egypt to Israel but ceased operations in 2012.
- African News Agency (ANA)