WSJ: Egypt would approve BG's Israel gas deal if local demand met

|About: BG Group Plc (BRGXF)|By:, SA News Editor

Egypt is willing to approve a potential deal allowing BG Group (BRGXF, BRGYY) to import natural gas from Israel for its local facility if the parties involved agree to help meet the country's domestic demand at a reasonable price, WSJ reports.

The partners in Israel's Leviathan offshore natural gas field, including Noble Energy (NBL), signed a preliminary agreement last month with BG for the supply of natural gas from the field to BG's existing natural gas liquefaction facilities in Egypt.

According to the deal, Leviathan would supply 7B cubic meters/year for 15 years via an underwater pipeline, or average volumes of 685M cf/day, the equivalent of just over 70% of the BG-operated Idku plant's daily volumes.