Energean signs $2b gas deal with East Hagit power plant

Hagit power station Yokneam Credit: Eyal Izhar

Energean CEO Mathios Rigas: We look forward to delivering first gas from Karish, which remains on track for the third quarter this year.

Energy exploration and production company Energean (LSE: ENOG; TASE: ENOG) has announced that it has signed a natural gas sales agreement with the East Hagit power plant worth $2 billion over 15 years. East Hagit will buy 0.8 billion cubic meters (BCM) annually for the period of the contract for up to 12 BCM.

Energean has the rights to the Karish and Tanin offshore gas fields which it bought from Delek Group Ltd. (TASE:DLEKG). The East Hagit power plant near Yokneam was privatized by the Israel Electric Corp. (IEC) and sold to Edeltech Group and Shikun & Binui Energy, which won the tender to buy it.

Energean CEO Mathios Rigas said, "We are delighted to have signed a new agreement of up to 0.8 billion cubic meters a year for our flagship assets in Israel, delivering on one of our key milestones for 2022. This is the third in a row for us from the Israel Electric Corp power plant privatisation programme and I want to thank Edeltech and Shikun & Binui Energy for their continued trust and confidence

He added, "I’m pleased to also confirm that the Energean Power FPSO has sailed-away and we look forward to delivering first gas from Karish, which remains on track for the third quarter this year."

Published by Globes, Israel business news - en.globes.co.il - on May 3, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Hagit power station Yokneam Credit: Eyal Izhar
Hagit power station Yokneam Credit: Eyal Izhar
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