Snam finalizes acquisition of stake in East Mediterranean Ga...| MENAFN.COM

Saturday, 01 October 2022 05:54 GMT

Snam finalizes acquisition of stake in East Mediterranean Gas Company

(MENAFN- Trend News Agency)

BAKU, Azerbaijan, Dec.3

By Leman Zeynalova – Trend:

Italian Snam company has finalized the acquisition from Thai energy company of a 25 percent stake in the East Mediterranean Gas Company (EMG), Trend reports with reference to the company.

East Mediterranean Gas Company is the owner of the Arish-Ashkelon pipeline, an undersea infrastructure, 90 km long, connecting the Israeli terminal of Ashkelon to the Egyptian receiving station of Al-Arish.

The pipeline has a daily maximum capacity of around 12 million cubic meters expected to increase further. Built in 2008 to transport Egyptian gas to Israel, at the beginning of 2020 it turned into one of the main energy supply sources for Egypt, receiving gas from Israeli offshore fields of Leviathan and Tamar.

With a 39 percent stake, EMED is the main shareholder of EMG; Israeli Delek Drilling as well as the Chevron Group, both running the Leviathan and Tamar gas fields, also have equity investments in the company.

The Arish-Ashkelon gas pipeline supplies a market characterized by an annual increase in natural gas demand of 8 percent due to the growth in consumption.

The acquisition of a stake in the Arish-Ashkelon gas network marks the entrance of Snam in the Eastern Mediterranean, an area which is expected to benefit both from gas demand growth and energy transition initiatives.


Follow the author on Twitter: @Lyaman_Zeyn


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.