Egypt says no date yet for gas deal with Israel

Egyptian and Israeli firms are in talks on a deal to supply Egyptian gas to Israel but there is no date yet for reaching agreement, Egyptian Oil Minister Sameh Fahmy said on Saturday. Egypt has been in talks to supply gas to Israel for years with little sign of progress amid strained ties between the two governments. But this week Egypt's official news agency said recently improving relations could open the way for a deal.
"The companies are negotiating together now. This project has been under negotiation for many years now," Fahmy said. Asked if he could say when a deal would be sealed, he replied: "Not at this stage."
He identified the Egyptian firm as Egyptian Mediterranean Gas Company and said it was up to the companies involved to decide on the amounts of gas to be supplied.
Egypt started gas exports last year with a pipeline to Jordan, which it plans to extend to Syria and Turkey and then to Europe. The pipeline to Jordan skirts around Israeli territory through an undersea section between Egypt's Sinai Peninsula and the Jordanian port of Aqaba.
Egyptian gas exports will rise sharply later this month, with the first shipment of liquefied natural gas (LNG) from the Damietta LNG plant, one of two LNG plants nearing completion or under construction on Egypt's north coast.
"The first shipment of Damietta is going to go to Spain before the end of this month. This is the first of the shipments ever that goes out of Egypt of LNG. Next year we start shipments to France, Italy and the United States," he said.
The Damietta plant is being built by a venture including Spain's Union Fenosa and Italy's ENI. The second plant is being built at Idku by a group of firms including Britain's BG Group.
Both LNG groups have been seeking to build additional gas processing units, or trains, at their sites.
The minister said the timing for building any new unit depended on developing the gas, but he said Egypt had adequate reserves for a new unit. Egypt has estimated proven reserves of 66 trillion cu ft (1.87 trillion cu metres).