WSJ: Shell in talks on $30B gas supply deal for its Egypt facility

Royal Dutch Shell (RDS.A, RDS.B) is in talks over a 15-year deal worth up to $30B to buy natural gas from offshore Israeli and Cypriot fields, liquefy it in Egypt and then transport it to Europe and beyond, WSJ reports.

The potential deal is the latest evidence that the eastern Mediterranean Sea"s extensive reserves of natural gas may be nearing the reach of the world"s big oil companies; gas reserves in the waters off Israel, Cyprus and Egypt total an estimated 125T cf, according to energy consultant Wood Mackenzie.

U.S. diplomacy has worked for years to try to knit together the economies of once-hostile nations such as Israel, Egypt and Jordan, and developing the eastern Mediterranean as a natural gas hub to lessen Europe’s dependence on Russian energy; a breakthrough occurred last month when Noble Energy and its partners signed a $15B deal to supply gas from two Israeli gas fields to an Egyptian firm.