Noble Energy and its partners Delek and Ratio have met all conditions precedent for the export of natural gas to Egypt from the Leviathan and Tamar gas fields offshore Israel.
As previously reported, the partners have signed a deal with Egypt’s Dolphinus Holdings Limited for the sale of gas from the two offshore fields, whereby the Egyptian company agreed to buy more than 85 BCM of gas from the Leviathan and Tamar partners.
Under the amended agreement, signed on September 26, Dolphinus will buy around 60 BCM of natural gas from the Leviathan field. This is a significant increase compared to 32 BCM stipulated under the original agreement.
The Leviathan gas supply to Dolphinus will start on January 1, 2020, and will continue until December 31, 2034, or until the supply of the full contractual quantity, whichever is earlier. The giant gas field is expected to start production later this year.
While the volume of gas to be sold from the Leviathan to Dolphinus has increased, the Tamar volumes have been reduced from the original agreements signed last year. Under the revised deal, Dolphinus will buy 25,3BCM, down from 32,3 BCM envisioned by the original agreement. Tamar partners will supply gas to Dolphinus starting June 30, 2020, until December 31, 2034.
Delek said Monday that the conditions precedent regarding receipt of the approvals of the Israeli Tax Authority and the approvals of the Petroleum Commissioner at the Ministry of Energy for the export of natural gas, had been fulfilled, in accordance with the terms and conditions determined in the Commissioner’s approvals, and that the export agreements will take effect in the coming days.
Gas from the two fields will be transported via a subsea gas pipeline EMG linking Israel and Egypt. The 26 inch, 90 km subsea pipeline – the EMG Pipeline – connects the Israeli transmission system in the Ashkelon area with the Egyptian transmission system in the El-Arish area, as well as related facilities.
Offshore Energy Today Staff
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