Energean Signs $2 Billion Natural Gas Supply Agreement with Israel’s Dalia Power Energies

Energean, a British-Greek oil and gas company, announced on Thursday that it has finalized a $2 billion deal to supply natural gas to Dalia Power Energies, a private Israeli energy producer. This agreement is part of Energean’s plan to meet rising electricity demand in Israel, with a production boost anticipated by 2025.

Under this agreement, Energean will supply up to 12 billion cubic meters (bcm) of natural gas over 18 years from the Karish gas field in the Mediterranean, off Israel’s coast, to Dalia Power’s Dalia and Eshkol power plants. Dalia Power Energies is responsible for producing approximately 16% of Israel’s natural gas-generated electricity.

“In the past year, we secured over $4 billion in new long-term gas sales agreements in Israel, including this $2 billion contract with Dalia Energy,” said Mathios Rigas, CEO of Energean. “With growing electricity demand and the move away from coal, Energean is positioned to secure additional long-term agreements, including potential export contracts.”

Energean’s acquisition of the Karish and Tanin gas fields in 2016 was driven by Israel’s aim to enhance competition in its energy market. Production from Karish began in October 2022. Energean is listed on the Tel Aviv Stock Exchange and plans to double its production by developing new resources in Israel, such as the Katlan gas reserve.

By 2025, Energean expects its production to rise to 120,000-130,000 barrels of oil equivalent per day (boepd), aiming to secure more long-term contracts to meet both domestic and potential export demands, including markets like Egypt and Europe.

The company is making significant progress on its strategic projects, including the development of the Katlan reserve, which is on track for initial gas production in the first half of 2027. Katlan, containing an estimated 68 bcm of gas, is located near the Energean-owned Karish and Tanin fields.

In addition to the gas supply agreement, Energean announced a $750 million loan with Israel’s Bank Leumi to fund the Katlan development. Dalia Power Energies, part of a private consortium, recently acquired the Eshkol power station from the state-owned Israel Electric Corporation as Israel moves to diversify its electricity market with independent power producers.

Πηγή: pagenews.gr