Leviathan Partners Bid to Supply Gas to Cyprus

Leviathan Partners Bid to Supply Gas to Cyprus

On April 14, 2014, a proposal was submitted by Delek Group’s gas partnerships for the supply of natural gas through pipeline from the Leviathan reservoir in a tender published by the Government of Cyprus through the Government gas company – DEFA.

The tender is for the supply of natural gas to Cyprus in the amount of approximately 0.7 BCM to 0.95 BCM per year, in two tracks: one refers to the period of delivery which will commence in early 2016, and at the latest during the second half of 2017, and will terminate at the end of 2022 with three extension options, each to extend for another year; and the second relates to the supply which will commence at the beginning of the delivery period and will terminate at the end of 2025.

This offer is in accordance to the estimated development schedule of Leviathan and subject to, inter alia, the agreement between the bidders and the Cyprus Government on the terms of a binding agreement for the supply of natural gas, not later than August 21, 2014, as well as a number of other conditions.

It is also noted that on April 7, 2014, the Antitrust Commissioner advised the partners in the Leviathan project, that currently enforcement measures will not apply with regard to the joint marketing of natural gas from the Leviathan project to Cyprus, and that is until a final decision with regard to joint marketing of natural gas from Leviathan has been made.

Press Release, April 17, 2014; Image: Woodside

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