Energean Oil & Gas’ subsidiary Energean Israel has signed agreements for the supply of natural oil and gas from the Karish and Tanin fields, offshore Israel.
Under the agreement, Energean Israel will supply Dalia Power Energies and its sister company Or Power Energies with up to 23 billion cubic metres of natural gas from Karish-Tanin reservoirs over the lifetime of the contracts.
Energean Oil & Gas chairman and chief executive Mathios Rigas said: “This is a significant day for the Israeli gas market. These are the first contracts for gas supplies from the Karish and Tanin fields signed with the Dalia group, the largest private power producer in Israel.
“The agreement is a substantial step towards bringing competition and cheaper energy to the market for the benefit of Israeli consumers and the country’s economy. Energean is in talks regarding further contracts with other potential customers in the market and is aiming to submit a Field Development Plan for the Karish and Tanin project in the next few weeks.”
The agreements will start from the date natural gas flows in commercial volumes from the sites to the purchasers, and conclude when the purchasers’ generation licenses need to be extended.
The deal includes a take-or-pay arrangement for a minimum amount of natural gas at a price linked to the Israeli electricity markets.
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