Special to WorldTribune.com

TEL AVIV — Egypt and Israel have signed an initial agreement for what could be mark a major natural gas deal.

An Israeli consortium said it signed a non-binding Letter of Intent with Dolphinus Holdings, which represents non-governmental, industrial and commercial consumers in Egypt.

The Tamar Project group, led by the U.S. firm Noble Energy along with Israel’s Delek Group, said the LoI was signed on Oct. 17 and envisioned the export of Israeli offshore gas through a pipeline operated by Egypt’s East Mediterranean Gas.

“I have no doubt these agreements will lead to a strengthening of ties between Israel and its neighbors,” Gideon Tadmor, chief executive officer of Delek subsidiary Avner Oil Exploration, said.

In a statement on Oct. 19, the Tamar Group said Egypt could receive five billion cubic meters of gas over three years. In 2012, Egypt suspended a 20-year gas supply deal with Israel amid Islamic insurgency attacks on the Arab Gas Pipeline as well as demands for a major price increase.

  Avner Oil Exploration, Egypt on track for major energy deal, Israel, Noble Energy, WorldTribune.com