Energean Signs Further Gas Sales Contracts and Moves Closer to FID for the Karish and Tanin Development Project
December 07 2017 - 5:11AM
Business Wire
The new GSPAs will bring total contracted volumes from the
Karish and Tanin development project to more than 4 BCM per year,
surpassing the Company’s initial targeted sales volumes and
creating significant additional value.
Energean Oil & Gas (“Energean” or “the Company”) is pleased
to announce that Energean Israel has signed further Gas Sales and
Purchase Agreements (“GSPAs”) for natural gas supply from the
Karish and Tanin fields, offshore Israel.
GSPAs totalling up to 2.6 billion cubic metres (“BCM”) of
natural gas annually have been signed with one of the largest
industrial groups in Israel, comprising Israel Chemicals (NYSE and
TASE: ICL), Bazan Oil Refineries (TASE:ORL) and the independent
power producer OPC. In addition, a GSPA totalling up to 0.3 BCM has
also been signed with Rapac Group, a leading group focusing on
Telecom, Government and Energy & Infrastructure in Israel.
The new GSPAs, together with those already signed with Dalia
Group, Dorad Group and Edeltech Group, bring the annual total
committed purchase volume to more than 4 BCM per year of natural
gas from the Karish and Tanin fields providing further momentum to
progress to FID, targeted for early 2018.
Energean Oil & Gas CEO, Mathios Rigas, commented: “In
just one year since the Israeli Government granted its approval for
the acquisition of the Karish and Tanin fields, Energean has
succeeded in securing its targeted gas supply volume to help
de-risk the project. Some of the leading private Israeli companies
have seized the opportunity to buy gas at an attractive price and
Energean has brought competition to the market for the benefit of
Israeli consumers and the country’s economy.
“These supply commitments, surpassing our initial 3 BCM per year
target, demonstrate the strength of the local gas demand and we
look forward to unlocking the significant further potential of
these fields. We are aiming to progress with FID early in 2018 and
our focus now lies in moving ahead on all related project
milestones to deliver first gas as planned.”
ENDS
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