Leviathan Partners Sign Preliminary Agreement to Supply Gas to BG's Egypt LNG Plant

Partners in Israel's Leviathan offshore natural gas field have signed a preliminary agreement with BG Group to supply natural gas to BG’s existing LNG facilities in the Idku city in Egypt.

As per the agreement, the partners would supply 7 billion cubic meters of gas per annum for a period of 15 years, Delek Group said in a statement Sunday.

Supply of gas will take place through a subsea pipeline which will be connected to the LNG facility.

Delek said the price of gas sold will be determined in a formula as to be agreed by the parties.

News agency Reuters citing an energy source in Tel Aviv said such a deal would be worth about $30 billion. The source said the pipeline would be built by BG and a final agreement was expected by the end of 2014.

Partners in the Leviathan Project and their percentage holdings are as follows:

Noble Energy Mediterranean Ltd. 39.66% 
Avner Oil Exploration - Limited Partnership 22.67% 
Delek Drilling - Limited Partnership 22.67% 
Ratio Oil Exploration (1992) - Limited Partnership 15.00%