In This Article:
* Brussels proposes draft memorandum of understanding
* Deal aims to boost gas imports from Eastern Med via Egypt
* Agreement not binding, expected to be valid for nine years
By Francesco Guarascio
BRUSSELS, June 9 (Reuters) - The European Commission has proposed a deal to EU member states with Egypt and Israel to boost imports of natural gas from the eastern Mediterranean, according to a draft document seen by Reuters dated June 7.
The draft memorandum of understanding, which is still subject to changes and needs approval from the governments involved, is part of European Union efforts to reduce fossil fuel imports from Russia following the war in Ukraine.
"The natural gas to be shipped to the European Union will originate either from the Arab Republic of Egypt, the State of Israel, or any other source in the East Mediterranean region, including EU Member States in the region," the nine page document said.
The EU has said publicly it intends to conclude a trilateral agreement with Egypt and Israel before the summer, but the details in the June 7 draft are not public.
EU Commission President Ursula von der Leyen is due to visit Cairo next week.
The European Commission declined to comment on the draft agreement, or whether von der Leyen's trip could be when the memorandum of understanding is signed.
The draft deal establishes the principles for enhanced cooperation between the three partners but does not say how much gas the EU would import nor set any timelines for deliveries.
The document said shipments would include the use of liquefied natural gas (LNG) infrastructure in Egypt, noting the North African country's plan to become a regional hub for natural gas.
The memorandum of understanding would run for nine years from its signature, the document says, although that part is still in brackets, a sign that there is a higher chance it could be changed than other paragraphs.
EU FUNDING
Egypt already exports relatively small amounts of gas to the EU, and both countries are expecting to ramp up production and exports in the coming years.
The Egyptian government was not immediately available for comment on the draft agreement.
Egypt exported 8.9 billion cubic metres (bcm) of LNG last year and 4.7 bcm in the first five months of 2022, according to Refinitiv Eikon data, though the majority goes to Asia.
Israel is on track in the next few years to double gas output to about 40 bcm a year as it expands projects and brings new fields online, industry officials say. Israel has said it hopes to reach a deal to supply gas to Europe and is also considering building a pipeline to export more gas to Egypt.