By Sarah El Safty
CAIRO, Feb 14 (Reuters) - A floating liquefied natural
gas (LNG) terminal that NewMed Energy aims to develop
will have an annual capacity of 7 billion cubic metres (bcm)
based on initial plans, the chief executive of the Israel-based
company said on Tuesday.
The multi-billion dollar terminal, for which an investment
decision is expected next year, could significantly boost East
Mediterranean gas exports to Europe, NewMed Chief Executive
Yossi Abu told Reuters on the sidelines of an energy conference
in Cairo.
The terminal will be built close to the platform of Israel's
Leviathan gas field, Abu added.
NewMed partners with Chevron Corp and Ratio Energies in the Leviathan gas field, which supplies gas to
Israel, Jordan and Egypt through a network of pipelines.
Production from the field would rise to 14 bcm from 12 bcm
within two years, with most of the additional output going to
Egypt, Abu said.
Egypt exports gas to Europe through two liquefaction plants
on its north coast.
Last year, Israel signed a memorandum of understanding with
Egypt and the European Union to raise exports to Europe as the
bloc seeks to diversify away from Russian gas, which could help
secure backing for the floating LNG terminal off Israel.
"This is a project for which I think there's a lot of focus
and EU support, and we're seeing all the global market really
support this project," Abu said.
However, the location of a floating terminal near the
Leviathan platform, which is about 10 km from the shore, could
raise environmental concerns.
Activists and municipalities near the platform campaigned
unsuccessfully for it to be built farther at sea.
The East Mediterranean Gas Co pipeline that carries gas from
Israel to Egypt was being expanded to a capacity of 8 bcm from 5
bcm, and a new 6 bcm onshore pipeline could further boost flows
within two years, Abu said.
(Additional reporting by Ari Rabinovitch; Writing by Aidan
Lewis; Editing by Shounak Dasgupta)
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