BUSINESS

Energean deal with Israeli state company

TAGS: Energy, Business

Greek oil company Energean on Monday announced the signing of an agreement with Israel Natural Gas Lines which foresees the construction by Energean of onshore and near-shore natural gas facilities in Israel, to be handed over to INGL upon completion.

The pipework will transmit quantities from Energean’s floating, production, storage and offloading unit to the Israeli gas network.

According to the memorandum of understanding signed, the Israeli state company that manages the gas transmission system will pay Energean some $100 million.

The handover is scheduled right after the first delivery of natural gas from the Karish-Tanin reserve in the first quarter of 2021.

“The MoU is an important milestone for the Karish and Tanin development. The Open Access System infrastructure being built by Energean will enable connection of future gas discoveries to the system, further contributing to Israel’s energy security and diversity of supply. Our collaboration with INGL demonstrates the Israeli government’s support and commitment to the Karish-Tanin project, from which natural gas will flow to the Israeli market from Q1 2021,” stated Yuval Steinitz, Israel’s national infrastructure and energy minister.

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