The LOI calls for 1.6 tcf (45 bcm) to be supplied over a 15-year term, with initial sales volumes of 300 MMcf/d (8.5 MMcm/d).
Gas delivery is expected to occur at a border location between Israel and Jordan, following the completion of associated pipeline infrastructure. The sale price will be based primarily on a linkage to Brent oil prices but will depend on negotiations for a binding agreement.
Noble expects to conclude a final gas purchase and sales agreement later this year, subject to the receipt of regulatory approvals in Israel and Jordan. The parties are working with the support of the US Department of State.
Keith Elliott, Noble Energy’s senior vice president,Eastern Mediterranean, said: “This LOI and other recent regional export arrangements are advancing the first phase of development at the Leviathan project, which is being designed with capacity for 1.6 bcf/d (45 MMcm/d) of natural gas… We now have over 60% of Leviathan’s initial capacity and 80% of targeted initial sales volumes secured with LOIs.”
Noble operatesLeviathan in partnership with Delek Drilling, Avner Oil Exploration, and Ratio Oil Exploration (1992) Ltd Partnership. The field has a discovered resource of around 22 tcf (620 bcm).