The partners involved in Israel’s giant Leviathan natural gas field said that they have entered talks to supply 14.8bcm of natural gas over 17 years to Edeltech, an Israeli private power provider, Reuters reported. Based on prices under similar agreements signed in the region, the deal could be worth around $3b.
Delek Drilling and Avner Oil said in a statement mid January that The parties signed a non-binding letter of intent with the aim to negotiate a binding agreement, according to LNG World News. This came as in 2016, Edeltech committed to buy 6bcm of gas from Leviathan for its power plants.
Leviathan, which is expected to start production in 2019, was discovered in the eastern Mediterranean in 2010. Israel has an estimated 622bcm of gas earmarked for exports. Delek Drilling and Avner each hold 22.67% of Leviathan, while Texas-based Noble Energy owns 39.66% and Ratio Oil holds the remaining 15%.
Edeltech is a partner in the $1.3b Dorad Energy plant as well as the Ashdod and Ramat Negev co-generation plants.