INGL, Poseidon sign MoU to study Israel gas pipeline to Europe

JERUSALEM (Reuters) - Israel Natural Gas Lines (INGL) is looking at building a natural gas pipeline to Europe under a memorandum of understanding signed with IGI Poseidon, it said on Tuesday.

The mooted EastMed pipeline could carry about 10 billion cubic metres of gas a year from the eastern Mediterranean to Cyprus, Greece, Italy and other European markets.

INGL and IGI Poseidon will form a joint team to examine technical, regulatory and other issues involved in constructing the pipeline, INGL said in a regulatory filing.

IGI Poseidon is a joint venture between Greek natural gas firm DEPA and Italian energy company Edison.

It has promoted the project for several years with the backing of Israel and a number of European countries.

Vast offshore gas discoveries over the past decade have transformed Israel into an energy exporter with export deals already signed with customers in Jordan and Egypt.

Reporting by Ari Rabinovitch; editing by Steven Scheer and Jason Neely