EGYPT— Adam Boehler, Chief Executive Officer of the U.S. International Development Finance Corporation (DFC), has announced a commitment to provide US$430 million in insurance to support the development of natural gas infrastructure in Egypt.
Boehler made the announcement during a signing ceremony that was held at the sidelines of the Investment for Africa Forum.
Also present during the signing was the U.S. Ambassador to Egypt Jonathan Cohen as well as Egyptian Prime Minister Moustafa Madbouly and Minister of Investment and International Cooperation Sahar Nasr.
According to DFC, the insurance facility will advance energy security in Egypt by rehabilitating a natural gas pipeline and transporting natural gas from fields offshore in Israel.
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.
The pipeline being restored had initially been used to transport natural gas from Egypt to Israel but ceased operations in 2012.
The insurance will also support the transportation of 3 trillion cubic feet of natural gas over 15 years, DFC revealed in a press statement.
Under the terms of the project, the gas will be purchased by Dolphinus Holdings, a gas trading company.
“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,” said Boehler.
On his part, US ambassador to Egypt H.E Jonathan Cohen said, “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.”
“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,” said J. Keith Elliott, Noble Energy’s Senior Vice President, Offshore.
“Egypt welcomes this massive private sector investment and looks forward to the economic impact it will have for the Egyptian people,” said Sahar Nasr Egypt’s Minister of Investment and International Cooperation.
DFC is a new U.S. Government agency that combines and modernizes OPIC and USAID’s Development Credit Authority (DCA).
With a more than doubled investment cap of US$60 billion and new financial tools, DFC is equipped to more effectively mobilize private sector capital to urgent development challenges and advance U.S. foreign policy.