Energean clinches further offshore Israel gas sales

Energean Israel has signed three gas sale and purchase agreements for the Karish and Tanin fields offshore Israel.

Offshore staff

ATHENS, GreeceEnergean Israel has signed three gas sale and purchase agreements for the Karish and Tanin fields offshore Israel.

Dorad Energy will purchase up to 6.75 bcm over the lifetime of the contract, a period of at least 14 years.

Ramat Negev and Ashdod will purchase up to 2.65 bcm from Karish and Tanin’s reservoirs over a similar timeframe.

Energean Oil & Gas CEO Mathios Rigas said: “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.”

Ramat Negev Energy and Ashdod Energy, which began operating commercially around two years ago, are owned by Edeltech and Zorlu Energy. Ramat Negev Energy’s power plant operates in the Adama Machteshim site in Neot Hovav, at a capacity of 125 MW, while the Ashdod Energy plant, with a capacity of 65 MW, is on the Adama Agan site in the Ashdod industrial area.

Both power plants provide electricity to consumers at the sites elsewhere, and provide steam and other industrial services, to the host factories and to nearby factories.

Dorad, established in 2014, is owned by EAPC (37.5%), Zorlu Energy (25%), Dori Energy (18.75%) and Edelcom (18.75%). It operates an onshore combined cycle power plant with natural gas as its main fuel, and diesel fuel as a backup.

The plant has a production capacity of around 860 MW. Dorad’s customers include Osem, Strauss, Bank Hapoalim, Mekorot, the Ministry of Defense and others.

The company plans to build another power station on the site - Dorad B - which will produce 650 MW of electricity. It would then generate more than 10% of Israel’s total electricity needs.

11/01/2017

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