Energean to sell up to $2 billion of gas to Israeli power plant
JERUSALEM (Reuters) – Energean has signed a deal to sell up to 12 billion cubic meters (BCM) of natural gas over 15 years to a private power plant in Israel, generating revenue of up to $2 billion, the company said on Tuesday.
Energean said its Karish gas field off the coast of Israel is set to come online in the third quarter of this year.
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The deal, signed with the East Hagit power plant, represents about 0.8 billion cubic metres (BCM) of gas a year. This, along with previous agreements in Israel, brings it to full capacity of 8 bcmeach year, it said.
The deal, the company said, is dependent on the completion of the privatisation of the East Hagit facility by state-owned utility Israel Electric Corp, including lenders’ consent.
Energean is also developing two other offshore projects in Israel and has a number of exploration licences in the country’s Exclusive Economic Zone.
(Reporting by Ari Rabinovitch, Editing by Louise Heavens)