Terms confirmed for Tamar gas exports to Egypt
Delek Group says the partners in the Tamar project offshore Israel have signed a contract to export natural gas to Dolphinus Holdings.
The quantity supplied will likely be based on the volume of surplus gas available from thedeepwater Tamar field, on an interruptible basis, over a period of seven years. The minimum cumulative volume offered under the first three years will be 5 bcm (3.6 tcf), subject to the daily limit of up to 250,000 MMBtu/d and any limitations imposed by Israel Gas Lines (IGL).
Dolphinus will be responsible for transporting the gas from Ashkelon to Egypt via the existing gas pipeline operated by the East Mediterranean Gas Co. (the EMG pipeline).
Pre-conditions include obtaining the regulatory authorizations from the authorities in Israel, including an export permit; signing of a transporting agreement between the Tamar partners and IGL; obtaining regulatory approvals from the authorities in Egypt; and signing of a transporting agreement between the buyer and EMG, enabling the gas to be piped to Egypt via the EMG pipeline.
Revenues from the sale of the minimum cumulative volume to the buyer could amount to $1.2 billion.
Partners in the Tamar project are:
- Noble Energy Mediterranean 36.00%
- Isramco Negev 2 28.75%
- Avner Oil Exploration 15.625%
- Delek Drilling 15.625%
- Dor Gas Exploration 4.00%.