Energean Sells Infrastructure to Israel

Greek explorer Energean Oil & Gas has sold to national transmission system operator Israel Natural Gas Lines the pipeline it is building to deliver gas from the Karish and Tanin fields, it said June 25.

The sale comprises a 10-km section to shore, from the floating storage and offtake vessel; and the onshore pipeline. The sale, for NIS 369mn ($102mn) which is payable in instalments, follows a memorandum of understanding last December.

INGL will become owner shortly after the delivery of first gas from the Karish field in 1Q 2021. Following hand over, INGL will be responsible for the operation and maintenance of this part of the infrastructure. Energean will not incur any charges or tariffs for use of this infrastructure, it said.

CEO Mathias Rigas said the agreement was “an important milestone for the Karish and Tanin development” and “demonstrates the commitment of the Israeli government to the project, and to long term development of gas resources offshore Israel.”

He said Energean had designed the infrastructure to allow future gas discoveries to be connected the system, “further contributing to Israel's energy security and diversity of supply.”