Noble Energy Announces Execution of LoI for Leviathan Gas to Egypt

US-based Noble Energy announced the execution of a non-binding Letter of Intent between the Leviathan field partners and BG International aimed at supplying Israel’s gas to BG’s existing natural gas liquefaction (LNG) facilities in Egypt.

‘The LOI contemplates a total gross sales quantity of up to 3.75 trillion cubic feet (Tcf) of natural gas over a 15-year period, or the equivalent of approximately 700 million cubic feet per day over the term.  Delivery of the natural gas to BG is expected at the outlet of the Leviathan floating, production, storage, and offloading vessel, with planned connection to the LNG facilities by way of subsea pipeline,’ reads a note released by Noble Energy on Monday. 

According to the Noble Energy’s partner Delek Drilling, the price of gas will be determined in a formula as to be agreed by the parties. The companies did not provide additional information. 

‘As of the date of this report, the parties estimate that the Binding Agreement will be subject to several contingent terms, including the development of the Leviathan Project, which is subject inter alia to binding final investment decisions by each of the Leviathan Partners and to receipt of all required approvals from the authorities in Israel and Egypt,’ Delek Group wrote on Sunday. 

Noble Energy said it expects additional agreements to be executed this year to provide gas to Israel and regional markets.