Energean Sales Bring Israeli FID Nearer

Energean Israel has signed gas sales and purchase agreements and now has 4bn m³/yr provisionally contracted, bringing nearer the final investment decision (FID) for the Karish and Tanin fields, it said December 7.

Totalling "up to" 2.9bn m³/yr, the latest contracts are with Israel Chemicals, Bazan Oil Refineries, independent power producer OPC and Rapac Group, which focuses on energy and infrastructure projects. The last is for up to 0.3bn m³/yr, Energean said.

CEO Mathios Rigas said that Energean has now surpassed its targeted gas supply volume of 3bn m³/yr to help de-risk the project. "Some of the leading private Israeli companies have seized the opportunity to buy gas at an attractive price and Energean has brought competition to the market for the benefit of Israeli consumers and the country’s economy.... We are aiming to progress with FID early in 2018 and our focus now lies in moving ahead on all related project milestones to deliver first gas as planned.”

Energean Israel is a 50-50 joint venture with private equity fund Kerogen.