Egypt Secures Potential $20B Gas Deal with Israel's Tamar Consortium
A proposed USD 20 billion agreement between Isramco and Abu Dhabi state-owned Mubadala Energy would see them supply up to 80 bcm of gas from Israel's Tamar field to an unnamed Egyptian buyer between 2031 and 2038. The deal, which is non-binding, would mark the third long-term supply agreement between the Tamar consortium and Egypt, with deliveries expected to begin in 2031.
The USD 20 billion figure is based on Isramco's revenue estimates, which suggest that its 28.75% stake in the field would earn around USD 5.75 billion if the full volume of gas were sold at an average price of USD 7 per MMBtu. However, this is contingent on all Tamar partners signing on to the agreement.
The commercial terms of the proposed deal would be similar to previous agreements between the Tamar consortium and Egypt, with pricing linked to Brent crude and a price floor in place. The agreement would also retain take-or-pay provisions, allowing for some flexibility in gas delivery volumes.