Delek, Noble Energy sign Cypriot LNG plant MOU

The Tamar and Leviathan partners signed a MOU with the Cypriot government to build an LNG plant on the island's southern coast.

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva and Noble Energy Inc. (NYSE: NBL) have signed a memorandum of understand with the Cypriot government to build a liquefied natural gas (LNG) plant at Vasilikos on the island's southern coast. The companies are partners in Israeli offshore fields Tamar and Leviathan and in Cyprus's Block 12.

The companies' objective is to reach a final agreement by the end of 2013 to establish a joint special-purpose vehicle which will seek investors for the 7-8 billion LNG plant. "On this basis, it is planned that the first LNG cargo would be delivered from the Vasilikos plant to international markets in late 2019, early 2020," said an official statement.

Delek Drilling LP (TASE: DEDR.L) CEO and Avner Oil and Gas LP (TASE: AVNR.L) chairman Gideon Tadmor said the memorandum of understanding demonstrates the Cypriot governments and the companies commitment to go ahead with the construction of the LNG plant.

The signing of the memorandum between the Republic of Cyprus and the companies represents the next milestone on the road map for the exploitation of indigenous gas reserves in Cyprus exclusive economic zone, said Cyprus Minister of Energy, Commerce, Industry and Toursim Yiorgos Lakkotrypis. He added that the LNG plant would be the basic and necessary infrastructure which would allow the export of Cypriot natural gas to the European and global markets.

Published by Globes [online], Israel business news - - on June 26, 2013

Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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