Gazprom M&T Signs HoA with Tamar FLNG Consortium, Israel

Gazprom M&T Signs HoA with Tamar FLNG Consortium

Gazprom Marketing & Trading Switzerland AG and Levant LNG Marketing Corporation executed the Heads of Agreement (HOA), outlining the main terms of an exclusive offtake arrangement from Tamar floating LNG project for a 20 year period.

The aim of the future deal is to expand Gazprom’s LNG marketing and trading portfolio.

The agreement follows an earlier Letter of Intent signed between the two parties in March 2012.

The Tamar FLNG project is based on feed gas from Tamar and Dalit gas fields offshore Israel, in the Eastern Mediterranean Sea, being developed by the Tamar upstream consortium (Noble Energy Mediterranean, Delek Drilling, Avner Oil Exploration, Isramco Negev-2 and Dor Gas).

In November 2011 Tamar Partners signed an agreement with DSME, NextDecade and D&H Solutions to initiate joint development and implementation of a floating LNG facility scheduled for commissioning in 2017 with an estimated annual output of 3mtpa. Shortly after the midstream project company, Levant LNG Marketing Corporation, was established to conduct discussions with potential LNG offtakers.

The signing took place at the DSME headquarters in Seoul, South Korea.

Vitaly Vasiliev, CEO of Gazprom Marketing & Trading Limited, said: “This is an important milestone for strengthening Gazprom’s position in the global LNG market. We are excited to work on making this project a success alongside our partners. We are confident that this deal will not only help strengthen and diversify Gazprom’s LNG portfolio, but also help GM&T build on our success in the Asia-Pacific region, where we have recently closed long and medium-term deals with numerous counterparties in India and North East Asia.”

“The Pangea business model offers the opportunity for all stakeholders to take part in the value enhancement from gas production through the FLNG/midstream solution to the final off take of LNG,” said Kathleen Eisbrenner, Pangea CEO. “Pangea LNG opens the potential for national oil companies and owners of small to medium size gas reserves to monetize stranded gas and take part in the value creation in the entire value chain.”

LNG World News Staff, February 26, 2013; Image: Pangea LNG