Greece’s
Energean Oil & Gas announced on October 30 that Energean Israel has signed
three new Gas Sales and Purchase Agreements (GSPAs) with Dorad Energy Ltd, and
with Ramat Negev Energy Ltd and Ashdod Energy Ltd, both subsidiaries of the
Edeltech Group, for natural gas supply from the Karish and Tanin Fields,
offshore Israel.
Under the
GSPA signed with Dorad, Dorad will purchase up to 6.75 billion cubic metres of
natural gas from Karish and Tanin’s reservoirs over the lifetime of the
contract, a period of at least 14 years, according to Energean.
Under the
GSPAs signed with Ramat Negev and Ashdod, the two companies will purchase a
total amount of up to 2.65 billion cubic metres of natural gas from Karish and
Tanin’s reservoirs over the lifetime of the contracts, a period of at least 14
years, the Greek oil and gas company said.
“We are delighted to have made such rapid
progress in securing these agreements. Israel’s private sector is taking
advantage of the competitive prices offered by Energean,” 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,” he added.
“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. We are
delivering the contracts we have promised as planned and we are working
steadily towards achieving all the milestones on the project required to reach
Final Investment Decision,” Rigas said.
On behalf
of Dorad, EAPC and Dorad Chairman
Erez
Halfon noted that the agreement balances the need for certainty and
reliability of supply alongside an attractive price. “The agreement with
Energean will enable Dorad to prepare for the expansion of Dorad’s production
capacity through Dorad B and the progression towards selling electricity to end
users in the regions of Ashkelon and the Gaza perimeter,” Halfon said. “The
Dorad Power Plant is responsible for creating competition in the electricity
market, and Dorad naturally supports the development of small reservoirs that
promote competition in the Israeli natural gas market,” he added.
On behalf
of Ramat Negev and Ashdod it was stated that the GSPA’s signed enables the
diversification of natural gas supply sources for local projects and contribute
to the companies’ business strategies.
https://www.neweurope.eu/article/greeces-energean-inks-gas-supply-deals-israeli-fields/