The partners in the Leviathan gas field offshore Israel have entered talks to supply 14.8 billion cubic metres (bcm) of natural gas over 17 years to local electricity producer Edeltech.
The parties signed a non-binding letter of intent with the aim to negotiate a binding agreement, Delek Drilling and Avner Oil said in a statement on Tuesday.
Edeltech last year agreed to buy 6 billion cubic meters of gas from the Leviathan partners to supply its two power plants.
The Leviathan project is being led by Noble Energy and Delek through its subsidiaries Delek Drilling and Avner Oil.
The field, estimated to hold about 622 bcm of gas, is expected to start production in 2019.