Tamar Partners have signed a Letter of Intent to supply gas from the Tamar gas field, off Israel, to Egyptian company Dolphinus Holdings Limited.
The plan is to supply the gas using the existing gas pipeline operated by East Mediterranean Gas Ltd (“EMG Pipeline”).
The letter of intent includes several commercial conditions for the proposed transaction, which will serve as a basis for negotiating the binding agreement. The release says that the supply under the binding agreement will be of 250,000 MMBtu per day for a period of 7 years.
The statement by Delek Group further notes that, “the gas supply will be on an interruptible basis of quantities of surplus gas available to the Tamar Partners from the Tamar Project; however, the Tamar Partners undertake to supply a minimum, cumulative amount of 5 BCM over a period of 3 years. It is the parties’ intention that the gas shall be transported via the IGL transport system to Ashkelon and from there to Egypt using the EMG Pipeline”.
The gas to be purchased will mainly be supplied to industrial consumers in Egypt.
Partners in the Tamar Project and their percentage:
– Noble Energy Mediterranean Ltd. 36%
– Isramco Negev 2 Limited Partnership 28.75%
– Avner Oil Exploration – Limited Partnership 15.625%
– Delek Drilling – Limited Partnership 15.625%
– Dor Gas Exploration – Limited Partnership 4%