Natural Gas Lines to buy Energean gas line segment

Yuval Steinitz, Mathios Rigas and Energean execs  photo: Chen Galili

Energean will construct the eastern segment of the gas pipeline, and transfer it to Natural Gas Lines Company for NIS 369 million.

Energean Oil and Gas, holder of the development licenses for the Karish and Tanin natural gas reservoirs, yesterday signed a detailed agreement with Israel Natural Gas Lines Company, an Israeli government company. Under the agreement, Energean will build and transfer to Natural Gas Lines the eastern segment of the gas transportation system, consisting of the undersea segment beginning 10 kilometers from the coast and a coastal land segment. Natural Gas Lines will pay Energean NIS 369 million for building the system and, and will bear responsibility for maintaining it. Energean will not have to pay for using the system, which can also be used for other reservoirs in the future.

The system will consist of an offshore reception station 10 kilometers west of the Dor coast, a gas pipeline to be laid on the sea bed, and a land reception station for measuring, regulating, and connection to the gas transportation system. The system will be capable of transporting up to 12 BCM of gas (1.6 million cubic meters per hour). The first reservoir that will be hooked up to the system will be Karish, for which Energean holds a development license. Delivery of the segment to Natural Gas Lines will take place shortly after gas begins flowing from Karish, which is scheduled to occur in 2021.

Minister of National Infrastructure, Energy, and Water Resources Dr. Yuval Steinitz said, "The agreement is an important step in the future development of small and medium-sized gas reservoirs, which can use Natural Gas Lines' infrastructure. This measure , which will enable infrastructure for transporting gas to the shore to be shared by a number of reservoirs, will encourage continuation of exploration and development of small and medium-sized reservoirs in the future, and contribute to strengthening Israel's energy security."

Energean CEO Mathios Rigas said, "We thank National Gas Lines' management and professionals staff for their cooperation, which demonstrates a concrete commitment to development of the Karish and Tanin reservoirs, as well as to the development of natural gas reservoirs in the future."

National Gas Lines chairperson Eitan Padan added, "With additional adjustments, the system can also serve as a basis for projects and the export of Israeli gas to export destinations beyond the currently existing ones."

Published by Globes, Israel business news - en.globes.co.il - on June 25, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Yuval Steinitz, Mathios Rigas and Energean execs  photo: Chen Galili
Yuval Steinitz, Mathios Rigas and Energean execs photo: Chen Galili
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