The Israeli and Egyptian energy ministers have agreed to build a pipeline to connect Israel’s offshore Leviathan natural gas field to liquefied natural gas (LNG) terminals in northern Egypt, the Israeli minister said on Sunday.

Yuval Steinitz hosted a meeting with his Egyptian counterpart, Tarek El Molla, as both countries look for new ways to expand the development of east Mediterranean natural gas.

The Leviathan field, located 130 km (80 miles) off Israel’s coast, already supplies the Israeli domestic market and exports gas to Jordan and Egypt. Its shareholders include Chevron and Delek Drilling.

Leviathan’s partners have been exploring options to expand the project, including a floating LNG facility or a subsea pipeline to link up with LNG terminals in Egypt that have been idled or run at less than their potential capacity.

Steinitz said the two governments were moving ahead with the pipeline plan and were working on a formal agreement.

“The two ministers agreed on the construction of (an) offshore gas pipeline from the Leviathan gas field to the liquefaction facilities in Egypt, in order to increase the gas exports to Europe through the liquefaction facilities in Egypt,” Steinitz’s office said in a statement.

-Reuters