Greece’s Energean, Israel’s INGL ink infrastructure hand over deal

ENERGEAN OIL & GAS

Karish and Tanin Floating Production Storage and Offloading unit.

Greece’s Energean, Israel’s INGL ink infrastructure hand over deal


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Greece’s Energean Oil and Gas announced on 25 June that it has signed a Detailed Agreement with Israel Natural Gas Lines (INGL) for the hand over of the near shore and onshore part of the infrastructure that will deliver gas from Israel’s Karish and Tanin FPSO into the Israeli national gas transmission grid. An Memorandum of Understanding with INGL was signed in December 2018.

According to Energean, a consideration, INGL will pay Energean 369 million Israeli New Shekels, approximately $102 million, which will be paid in accordance with milestones detailed in the Agreement.

“The Agreement signed with INGL is an important milestone for the Karish and Tanin development, which will start flowing natural gas to the Israeli market in the first quarter of 2021,” Energean CEO Mathios Rigas said. “This demonstrates the commitment of the Israeli government to the project, and to long-term development of gas resources offshore Israel. The infrastructure being built by Energean will enable connection of future gas discoveries to the system, further contributing to Israel’s energy security and diversity of supply. We thank INGL management and professional team for the collaboration – we look forward to developing more projects together in the future,” he added.

The Agreement covers the onshore section of the Karish and Tanin infrastructure and the near shore section of pipeline extending to approximately 10 kilometres offshore. It is intended that the hand over to INGL will become effective shortly after the delivery of first gas from the Karish field in the first quarter of 2021. Following hand over, INGL will be responsible for the operation and maintenance of this part of the infrastructure, Energean said, adding that the Greek company will not incur any charges or tariffs for use of this infrastructure.

 

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