Partners in Leviathan sign $1.3bn gas deal

Jerusalem / Bloomberg

Israel’s natural gas companies and Noble Energy Inc. have signed the first contract to supply natural gas from the Leviathan site offshore Israel.
Partners in Leviathan, Israel’s largest field, will supply 6 billion cubic meters of gas over 18 years to two power stations owned by local electricity producer Edeltech Group, according to an e-mailed statement. Under a government program for the country’s natural gas industry approved last month, Leviathan will be developed by Texas-based Noble with Delek Drilling LP and Avner Oil Exploration LP, units of Israel’s Delek Group Ltd.
“This deal marks a beginning. We are advancing more agreements with customers in Israel, Jordan, Egypt and Turkey,” Yossi Abu, Delek Drilling chief executive officer, said in the e-mailed statement. “Development of the Leviathan field will ensure Israel’s energy security and gas export contracts from the site will strengthen the country’s geopolitical position in the region.”
Prime Minister Benjamin Netanyahu said last week that he is examining the possibility of a pipeline to transport gas from/to Europe via Greece. The Leviathan partners agreed in November to enter non-binding negotiations with Dolphinus Holdings Ltd. in Egypt to supply as much as 4 billion cubic meters of natural gas annually for a period between 10 and 15 years. Dolphinus is a consortium of large, non-governmental gas consumers and distributors headed by Egyptian businessman Alaa Arafa.
Delek Drilling shares advanced 3.9 percent to 11.61 shekels, the highest since January 13, while Avner Oil rose 4 percent to 2.278 shekels, the highest since January 6 at 10:58 am in Tel Aviv. Leviathan partner Ratio Oil Exploration 1992 LP increased 3.6 percent to 0.256 shekel, the highest since January 13.