The developers of the Leviathan gas field offshore Israel signed on Sunday a deal to sell around $1.3 billion worth of gas to Edeltech.
Edeltech will buy the natural gas for the purpose of operating power plants which it is due to build, together with its Turkish partner Zorlu, in Ashdod and Mishor Rotem, Israel’s Delek said in a statement.
Under the deal, the Leviathan partners will supply 6 billion cubic meters of gas over 18 years to two power stations owned by local electricity producer Edeltech.
“ The gas price determined in the supply agreement shall be linked to the electricity production tariff, as determined from time to time by the Public Utilities Authority-Electricity, and includes a “floor price,” the statement said.
The deal includes several conditions precedent, and mainly approval of the Leviathan reservoir’s development plan, “ receipt of a license for the gas transportation system from the Leviathan reservoir, adoption of a final investment decision by the Leviathan partners by the end of 2016 and adoption of a final investment decision by the buyer .”
The Leviathan project is being led by Noble Energy and Delek through its subsidiaries Delek Drilling and Avner Oil and Gas.
LNG World News Staff