BG-Noble Deal Any Closer Amid Middle East Frenzy?

BG International continues negotiations to buy gas from the deepwater Leviathan field offshore Israel for its LNG facility in Idku, Egypt, improving the prospects of a deal to be sealed soon. 

‘Operator Noble Energy and its partners have signed a non-binding letter of intent with BG, which could involve the supply of 7 bcm/yr (200 bcf/yr) over 15 years to BG’s existing LNG facilities in Idku. According to Isarel’s Delek Group, the gas would be exported from an FPSO on the Leviathan field through a subsea pipeline to Idku. The gas price for the binding agreement will be determined in a formula to be ratified by all parties’ reads a note released by BG on Tuesday.  

Last month, first evidences suggested that Royal Dutch Shell’s acquisition of British Gas could jeopardise the deal to export natural gas from the Leviathan field offshore Israel to Egypt. 

The Middle East remained under the spotlight over the last days, with several countries trying to tap into opportunities stemming from Iran and gas in the East Mediterranean. 

The heads of state of Iran and Hungary met on Monday, with President Hassan Rouhani committing to strengthen ties with Budapest.  

‘He added that the two countries also can make a link between the Middle East countries and the states in the Central Europe’ reads a note released on Monday evening.  

Meanwhile, Syrian and Iranian leaders are holding talks to step up cooperation in the energy and sector. Teheran is probably trying to further increase its influence in the region. 

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