Gazprom Inks LNG Deal With Tamar

Gazprom Marketing & Trading Switzerland AG, a subsidiary of Russian giant Gazprom, and Levant LNG Marketing Corporation have inked a deal where Gazprom will buy LNG from Tamar floating LNG project for a 20 year period. The agreement follows an earlier Letter of Intent signed between the two parties in March 2012.

The aim of the future deal is to expand Gazprom's LNG marketing and trading portfolio, the Russian firm said in a statement.   

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.

In November 2011 Tamar Partners initiated development and implementation of a floating LNG facility scheduled for commissioning in 2017 with an estimated annual output of 3 mtpa. Shortly after the midstream project company, Levant LNG Marketing Corporation, was established to conduct discussions with potential LNG offtakers.

Vitaly Vasiliev, CEO of Gazprom Marketing & Trading Limited, said: “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.”