Energean signs transmission agreement for Israel-Egypt Nitzana Gas pipeline
Updated 10/26/2025 8:48:00 AM
Arab Finance: Energean Israel Limited, a subsidiary of Energean plc, has signed a transmission agreement with Israel Natural Gas Lines Ltd. for capacity in the planned Nitzana pipeline, marking a key step in Energean’s long-term growth strategy, as per a press release.
The new onshore pipeline will run from Ramat Hovav to Egypt’s border in the Nitzana area, enabling the transport of natural gas between the two countries.
Under the agreement, Energean Israel will supply up to 1 billion cubic meters (bcm) of gas per year for 15 years, with provisions for extensions and early termination.
The deal also grants Energean access to available capacity in the Jordan-North pipeline during the Nitzana project’s construction phase.
The Nitzana pipeline is expected to be operational within 36 months after all three project participants sign transmission agreements covering the full capacity of the line.
Energean Israel’s 16.4% share of construction costs for the pipeline and associated compression station is estimated at about $100 million.
The company will finance most of this through a new $70 million unsecured 10-year term loan from Bank Hapoalim, complemented by cash on hand.
An initial 40% down payment will be followed by milestone-based payments throughout construction.
Energean has also signed a non-binding term sheet with a client in the East Mediterranean region for the offtake of its gas, aligning with its broader strategy to expand export opportunities and strengthen regional energy cooperation.
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