Energean achieves first gas from Karish North in Israel
London-listed Energean has achieved the first gas production from Karish North offshore Israel, it said on February 29.
The production well at Karish North is currently using the second gas export riser, which was installed in December 2023. The Energean Power FPSO now has four production wells operational, enhancing redundancy and flexibility to meet the demand requirements of Energean's gas buyers, the company said.
In addition to this achievement, Energean Israel has entered into a new 15-year gas sales agreement with Eshkol Energies Generation, a majority-owned entity of Dalia Energy Companies. The deal involves the supply of an initial 0.6bn m3/year of gas, with the volume increasing to 1bn m3/year from 2032 onwards.
Energean is a gas supplier to all four Israel Electric Corporation power stations that have been privatised: Ramat Hovav, Alon Tavor, East Hagit, and now Eshkol.
“The new contract with Eshkol is a further testament to the trust in Energean from the Israeli electricity producers, adds circa $2 billion of revenues over the life of the contract to our business, and is in line with our strategy to secure long-term reliable cash flows from long-term gas contracts,” Mathios Rigas, CEO of Energean, commented.
The contract includes provisions related to floor and ceiling pricing, take-or-pay arrangements, and price indexation, with the pricing not being linked to the Brent oil price.