Greek oil company Energean has signed three new gas sales and purchase agreements (GSPAs) for natural gas supply from the Karish and Tanin Fields, offshore Israel.
The agreements were signed between Energean’s subsidiary, Energean Israel, Dorad Energy and with Ramat Negev Energy and Ashdod Energy, both subsidiaries of the Edeltech Group.
Energean informed on Monday that, under the GSPA signed with Dorad, Dorad will purchase up to 6.75 billion cubic meters (BCM) of natural gas from Karish and Tanin’s reservoirs over the lifetime of the contract, a period of at least 14 years.
Under the GSPAs signed with Ramat Negev and Ashdod, the two companies will purchase a total amount of up to 2.65 BCM of natural gas from Karish and Tanin’s reservoirs over the lifetime of the contracts, a period of at least 14 years
Energean Oil & Gas CEO, Mathios Rigas, commented: “We are delighted to have made such rapid progress in securing these agreements. Israel’s private sector is taking advantage of the competitive prices offered by Energean. Companies that agree to receive natural gas from the Karish and Tanin fields strengthen their position in the local market and secure cheaper energy for the future.
“Energean has signed with Dalia, Dorad and Edeltech GSPAs for a total of up to 33 BCM in volume so far. The company has secured revenues of approximately $3 billion, underpinned by Take or Pay arrangements and firm floor prices once all conditions are satisfied. We are delivering the contracts we have promised as planned and we are working steadily towards achieving all the milestones on the project required to reach Final Investment Decision.”
To remind, Energean earlier this year signed with Dalia Power Energies and its sister company – Or Power Energies – two agreements for the supply of natural gas from the Karish and Tanin field.
On behalf of Dorad, Erez Halfon, Chairman of EAPC and Dorad said: “The agreement balances the need for certainty and reliability of supply alongside an attractive price. The agreement with Energean will enable Dorad to prepare for the expansion of Dorad’s production capacity through Dorad B and the progression towards selling electricity to end users in the regions of Ashkelon and the Gaza perimeter. The Dorad Power Plant is responsible for creating competition in the electricity market, and Dorad naturally supports the development of small reservoirs that promote competition in the Israeli natural gas market. ”
On behalf of Ramat Negev and Ashdod it was stated: “The GSPA’s signed today enable the diversification of natural gas supply sources for local projects and contribute to the companies’ business strategies.”
Energean received approval from the Israeli Petroleum Commissioner for its Field Development Plan (FDP) for the development of the Karish and Tanin natural gas fields back in late August. The company has already appointed TechnipFMC as the contractor for Concept and Front End Engineering Design (FEED) for the development.