Energean Israel Signs Gas Sales Contract

Energean Israel is to deliver about 0.5bn m³/yr to MRC Alon Tavor under a 15-yr contract that it announced November 21. Supply will begin with first gas from Karish field and the contract term is for a period of 15 years from the date of signature. The price will be linked to the Israeli Electricity Production Index and has floor pricing and take-or-pay provisions. Energean estimates that the deal will yield revenues in excess of $1bn over the term of the contract.

Energean also recently signed a contract amendment with OPC Rotem that accelerated the rate of gas consumption and increased annual gas supply by 0.2bn m³/yr. This was accompanied by a shortening of the contract term such that there was no change in the total contract quantity of gas.

Energean now has firm contracts for 5.0bn m³/yr of gas into the Israeli domestic market, excluding the contingent contracts with IPM Beer Tuvia (0.4bn m³/yr) and Or Power Energies (0.7bn m³/yr). Energean Israel is half-owned by private equity firm Kerogen.