Israel Starts Getting Gas from Offshore Pinnacles Well

Delek Group Ltd. and Noble Energy Inc. started natural gas supplies from their offshore Pinnacles gas well. The well is expected to flow 150 million cubic feet of gas every day.

The gas flow is reportedly one month ahead of schedule start date. 

The $105 million Pinnacles project is being developed to fill supply gas left by depletion of the Mari B well. The next major supply of gas is only expected to come from Tamar gas field, which is likely to come on line next year.

Israel is also facing shortage of gas due to absence of Egyptian gas. Supply from Egypt has been regularly disrupted since an uprising overthrew former Egyptian president Hosni Mubarak last year.  

Producers will receive $5-6 per million BTU for this gas, and because the gas will replace fuel oil for electricity generation, fuel cost savings to Israel will be about $13 per million BTU, Globes reported.

Noble Energy owns 47.1% of the Pinnacles field, and Delek Group owns 52.9%.