Greek-UK energy exploration and production company Energean plc (LSE: ENOG; TASE: ENOG) has announced that it has begun production of the first natural gas from Israel's Karish offshore field. The company said that this is a major milestone in promoting the vision of competition in Israel's natural gas market and enhancing Israel's energy independence and security of supply. Israel's two major gas fields - Leviathan and Tamar - are both operated by Chevron.
Energean said that gas is being produced from the Karish Main-02 well and the flow of gas is being steadily ramped up. Preparation for transmission through the gas sales pipeline is progressing and gas sales to Energean’s customers are expected to commence in the next couple of days. Karish Main-01 and Karish Main-03 wells are expected to be opened up in approximately two and four weeks, respectively.
The Energean Power FPSO rig and the sales gas pipeline have an ultimate annual capacity of 8 billion cubic meters (BCM). The initial annual capacity is up to 6.5 BCM and commercial gas sales are expected to reach this level approximately four to six months following first gas. Energean’s growth projects - the Karish North development, the second oil train and the second export riser - are on track for completion in late 2023, following which Energean will be able to produce to the full annual capacity of 8 BCM.
Energean CEO Mathios Rigas said, "We have delivered a landmark project that brings competition to the Israeli gas market, enhances security of energy supply in the East Med region and brings affordable and clean energy that will displace coal-fired power generation, making a material impact to the environment. We are committed to reach our medium-term targets of 200 kboed production and $1.75 billion of annualised EBITDAX and the delivery of the Karish project is a major milestone towards this goal. We are now focused on ramping up production and delivering the full 8 BCM capacity through our expansion project to the Energean Power FPSO."
The first gas has been produced the day before the maritime border agreement between Israel and Lebanon is due to be signed. In recent months Hezbollah had been threatening the Karish field, which is located close to the northern border of Israel's economic waters.
Published by Globes, Israel business news - en.globes.co.il - on October 26, 2022.
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