Leviathan seeks Turkish customers

The partners in Leviathan have distributed a request for offers for the purchase of 7-10 billion cubic meters of natural gas annually.

The tender for natural gas sales from the Leviathan field to Turkish business customers is underway. Sources inform ''Globes'' that, a few days ago, partners in Leviathan - Noble Energy Inc. (NYSE: NBL), Delek Group Ltd. (TASE: DLEKG), and Ratio Oil Exploration (1992) LP (TASE:RATI.L) - distributed a request for offers for the purchase of 7-10 billion cubic meters (BCM) of natural gas annually, to be delivered by pipeline.

The request was distributed among Turkish companies and multinationals interested in purchasing Israeli gas. In early 2013, the Turkish media reported that several corporations were interested in buying gas from Leviathan, including Zorlu Group, which is also building an independent power station in Israel, EgeGaz AS, Calik Holding AS, Turcas Petrol AS, and Genel Enerji AS.

The requests indicate that the Leviathan partners have not yet formulated the main terms, such as the time period for contracts, and ownership and financing of transportation infrastructures. It can therefore be assumed that this is an initial feeler by Leviathan's partners to test the market.

Delek and Noble Energy usually publish closed tenders among selected companies for key projects that they initiate, such as the floating liquefied natural gas (FLNG) facility intended for Leviathan.

In the past, developers have estimated the cost of building a pipeline to Turkey at $2.5 billion, and that the return on investment would be faster than a in corresponding venture to build an FLNG or onshore LNG facility.

The Leviathan partnership said, "The Leviathan partnership seeks to develop new markets in order to promote the development of the Leviathan gas field."

Published by Globes [online], Israel business news - www.globes-online.com - on January 19, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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