Global energy giant Shell is in talks to buy gas from the Leviathan and Aphrodite reservoirs (the former Israeli, the latter Cypriot) in a $25 billion deal over ten years, Bloomberg reported on Thursday.
According to the report, based on energy industry sources, the secret negotiations concern the purchase of 10 BCM annually from the two reservoirs together.
"If a deal is signed, it will represent a huge drama for the local economy. It will necessitate an expansion project for Leviathan, and remove any fear of excess supply of gas in the local market," an energy industry source told "Globes" today.
According to Bloomberg, the parties seek to sign a deal by the end of this year. Shell, which owns the EDCO natural gas liquefaction plant in Egypt, will then be able to liquefy the gas and sell it all over the world.
If such a deal was signed, it is unclear how the gas would be transported to Egypt. But as in the $15 billion gas deal that the Lerviathan partners and Tamar partners signed with Egyptian company Dolphinus Holdings, there are three options: using EMG's old pipeline, which used to bring gas from Egypt to Israel; transporting the gas via Jordan; or building a new pipeline.
The Leviathan partners declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on March 11, 2018
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