Noble Energy to Supply Union Fenosa Gas’ Facilities in Egypt

Noble Energy and Union Fenosa Gas (UFG) executed a non-binding Letter of Intent (LOI) for the supply of natural gas from offshore Israel to UFG's existing natural gas liquefaction facilities in Egypt.  

‘The LOI contemplates a contract term of 15 years and a total gross sales quantity of up to 2.5 trillion cubic feet (Tcf) of natural gas, or approximately 440 million cubic feet per day over the period,’ reads a note released on Monday.

According to Noble Energy, the price will be in line with contract price in other natural gas sales and purchase agreements for regional export sales from Israel. It is based mainly on a linkage to Brent oil prices.

“The associated expansion of the Tamar field facilities, subject to final investment decision of the Tamar partners, will not only enable substantial regional exports, but it will also increase the capacity for natural gas deliveries to Israel's domestic market.  Building on the recent agreements with the Palestinian Power Generation Company, as well as the Arab Potash and Jordan Bromine Companies, this agreement continues to demonstrate our ability to accelerate value and strengthen economic growth for stakeholders across the Eastern Mediterranean region," Keith Elliott, Noble Energy's Senior Vice President, Eastern Mediterranean, commented.

Noble Energy operates Tamar with a 36% working interest.  Other interest owners are Isramco Negev 2 (28.75%), Delek Drilling (15.625%), Avner Oil Exploration (15.625%), and Dor Gas Exploration (4%).  The Tamar field has an estimated 10 Tcf of discovered natural gas resources.