Energean has signed a new contract for the sale of natural gas for quantities of up to 0.8 billion cubic meters per year. The agreement concerns the East Hagit power plant, which was recently privatized as part of the bidding process of the state-owned Israel Electricity Company (IEC), and acquired by the East Hagit Power Plant Limited Partnership, a joint venture between the Edetlech Group and Shikun & Binui Energy.
The agreement is for 15 years and the total quantities can reach 12 billion cubic meters of natural gas to be produced from Energean fields in Israel.
Mathios Rigas, CEO of the Energean group stated:
“We are delighted to have signed a new contract for the sale of up to 0.8 billion cubic meters of gas per year for our deposits in Israel, achieving one of the key milestones for us in 2022. This is the third consecutive contract for Energean which is I would like to thank Edeltech and Shikun & Binui Energy for their continued trust, and I would like to confirm that FPSO “Energean Power” has left Singapore for Israel and we look forward to at the start of production from the Karish field in the third quarter of the year, according to our schedule “.
The East Hagit Power Plant Limited Partnership reported:
“This is another important step in the completion of the acquisition of the East Hagit power plant and a new stage in the joint effort of Edeltech and Shikun & Binui Energy to increase competition and efficiency in the electricity market for the benefit of Israeli consumers.”
The terms of the contract are similar to those of Energean’s other major contracts, and the deal raises the prospect of $ 2 billion in revenue for the company during its term and is a prerequisite for the completion of the East Hagit privatization process.
Energean has agreed to supply natural gas to both the Ramat Hovav power plant and the Alon Tavor power plant, the first two privatized power plants. In combination with the agreement for gas spot sales with the IEC, the company’s sales portfolio is strengthened for the full utilization of the annual capacity of 8 billion cubic meters of natural gas available to the FPSO “Energean Power”.
Source: Capital
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