TEL AVIV, Israel – Palestine Power Generation Co. (PPGC) has signed a natural gas supply agreement with the partners in two licenses offshore Israel.
According toDelek Group, the 349/Rachel and 350/Amit licensees will provide a total of 4.75 bcm (168 bcf) for a power plant that PPGC intends to build near Jenin in the northern West Bank.
Under the agreement, supplies will start from the beginning of the flow of gas from thedeepwater Leviathan field and end after 20 years, or at the date that PPGC has purchased the contracted volume. PPGC also has the right to reduce the amount supplied.
Depending on the actual volumes purchased, the value could range from $1 billion to $1.2 billion.
The agreement remains contingent on development approval for the Leviathan project and other legal approvals, and on closure of financing for the power plant.
Partners inLeviathan are:
Noble Energy Mediterranean
Avner Oil Exploration
Ratio Oil Exploration (1992)