Chevron halts gas exports via EMG pipeline from Israel to Egypt -October 10, 2023 at 11:19 am EDT

JERUSALEM, Oct 10 (Reuters) – Chevron has halted
natural gas exports through a major subsea pipeline between
Israel and Egypt and is supplying gas via an alternative
pipeline through Jordan, industry and government sources said on
Tuesday.

The decision to halt exports via the East Mediterranean Gas
(EMG) pipeline comes as fighting intensifies between Israel and
militants in the Gaza Strip.

The EMG pipeline runs from the southern Israeli town of
Ashkelon, located some 10 kilometres north of Gaza, to El-Arish
in Egypt, where it connects to an onshore pipeline.

The 90-kilometer pipeline is the main link between the
Chevron-operated Leviathan offshore gas field and Egypt.

Chevron decided to divert the gas due to security concerns
as a result of the military conflict, two industry sources said.

Israel’s energy ministry confirmed in a statement to Reuters
that Chevron had requested to export gas through an alternative
pipeline that links Leviathan to Jordan as well as Egypt, known
as the Arab Gas Pipeline.

On Monday, Israel suspended production at the Tamar gas
field off its southern coast three days after violence erupted
in the wake of a surprise attack by Hamas militants in the Gaza
Strip on Israel.

Chevron did not immediately respond to a request for
comment.

Separately, energy industry sources said the amount of gas
exported from Israel’s giant Leviathan field to Egypt has been
slightly reduced as supplies to the domestic market are
prioritized, but remains close to the quota.

Leviathan has been exporting higher volumes to Egypt than
committed under sales agreements for several weeks, the sources
said.

“Every molecule we export, we first check it is not needed
in the Israeli market,” one source said.

(Reporting by Ron Bousso and Ari Rabinovitch; Editing by Jan
Harvey)