CAIRO - 25 November 2019: U.S. International Development Finance Corporation (DFC) is committed to providing $430 million in insurance to advance energy security in Egypt, DFC’s CEO Adam Boehler stated Saturday.
The advancement of energy security will be achieved through rehabilitating a natural gas pipeline and transporting natural gas from fields offshore in Israel, Boehler explained.
Boehlar added during the Investment for Africa 2019 Forum currently held in Egypt that the insurance "will enable Noble Energy Inc. of Houston, Texas to restore the 90-kilometer EMG Pipeline running from the coastal city of Ashkelon, Israel and under the Mediterranean Sea to its destination in Al-Arish, Egypt."
According to Boehler, the insurance will also support the transport of 3 trillion cubic feet of natural gas over 15 years. The insurance contracts were signed this week after Noble Energy and its partners achieved financial close for the project.
“Strengthening energy security—which bolsters trade, supports investment, and improves quality of life—is critical to ensuring lasting prosperity and stability in Egypt,” said Boehler. “This project will help the country meet growing demand for reliable, low-cost energy in order to fuel sustained economic growth and create opportunities that have a stabilizing impact in Egypt and across the region.”
The signing ceremony included Boehler and U.S. Ambassador to Egypt Jonathan Cohen as well as Egyptian Prime Minister Moustafa Madbouly and Minister of Investment and International Cooperation Sahar Nasr.
“Egypt is a strategic partner to the United States. We are excited to support this critical investment in the country by an American company which will not only spur job creation and economic growth but also help provide reliable and affordable energy for the people of Egypt and others throughout the region,” said Cohen.
“Egypt welcomes this massive private sector investment and looks forward to the economic impact it will have for the Egyptian people,” said Nasr.
“The Dolphinus gas sales contracts and the EMG acquisition underpin delivery of natural gas from the Tamar and Leviathan fields in Israel into Egypt and represent a major milestone toward Egypt’s goal of becoming a regional energy hub. Both these transactions and the support from the U.S. Government provide further confidence in the long-term export market and growing cash flow from these premier assets,” said J. Keith Elliott, Noble Energy’s Senior Vice President, Offshore.
DFC announced in a statement that under the terms of the project, the gas will be purchased by Dolphinus Holdings, a gas trading company.
“The project will advance energy security in Egypt and support the country’s efforts to grow its economy by exporting gas to parts of Europe and other global markets. The pipeline being restored had initially been used to transport natural gas from Egypt to Israel but ceased operations in 2012,” it added.
DFC announced earlier that Boehler will exist in Egypt during Nov. 21 – 23, in order to promote U.S. investment, attend the Investment for Africa Forum, and strengthen regional relationships in pursuit of shared development goals in the region.
DFC clarified that this visit follows recent travel by Boehler to the Indo-Pacific, Latin America, and Sub-Saharan Africa to strengthen relationships with key partners and highlight DFC’s enhanced flexibility to support private sector investment in critical regions.
DFC's investments in Egypt currently exceeds $1.5 billion in sectors ranging from infrastructure to financial services and healthcare.
DFC is a new U.S. Government agency that combines and modernizes the Overseas Private Investment Corporation (OPIC) and USAID’s Development Credit Authority (DCA), with a more than doubled investment cap of $60 billion.