Tamar partners sign LNG accord with Gazprom

Delek Group says its subsidiary companies have signed a heads of agreement (HOA) with Levant LNG Marketing and Gazprom Marketing & Trading Switzerland.

Offshore staff

TEL AVIV, Israel – Delek Group says its subsidiary companies have signed a heads of agreement (HOA) with Levant LNG Marketing and Gazprom Marketing & Trading Switzerland.

This concerns sales of LNG from a future phase development of theTamar gas field offshore Israel. Studies are under way for a floating LNG facility.

Delek says all parties of the HOA agreed to hold exclusive negotiations for six months in order to sign a binding agreement for the sale of 3 MMton/yr of LNG over 20 years at a price that will be linked to Brent crude.

This could lead to Gazprom providing equity investment and/or other financial support for the FLNG facility.

Delek adds that the Tamar partners undertook not to enter into an agreement with any third party for the sale of LNG from Tamar or the undeveloped Dalit field for six months.

Gas production from the FLNG facility should not impact supplies from Tamar to the Israeli market, and will involve a dedicated production system with new phase of development wells.

2/27/2013

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