The Government of Israel has signaled the green light for the commencement of export of natural gas to Egypt. This represents a further enhancement in relations between the two countries, which have been in dispute over energy supplies.

Israel’s Energy Minister Yuval Steinitz in a statement on Thursday, said the country has the capability to sell 5 Bcm of gas to Egypt for the next 7 years from the Tamar site off its Mediterranean coast.

Egypt was once an exporter of gas to Israel under a 20-year agreement, but that had collapsed in 2012 due to attacks on the pipeline by militants in the Sinai Peninsula.

However, recently partners in the Tamar site entered into a 7-year deal that calls for a minimum of 5 Bcm of gas to be sold in the first three years, for Egypt's Dolphinus Holdings, to purchase no less than $1.2 billion of natural gas.

Owned by Noble Energy alongside Delek Drilling and Avner Oil Exploration (two units of the Delek Group), Tamar’s reserves is estimated to be approximately 280 Bcm.

According to Reuters, the agreement to supply gas to Egypt is still subject to the approval of necessary regulators and other parties.