Israeli Gas Project Secured $1.75b Funding

Israeli Gas Project Secured $1.75b Funding

The main Israeli partners developing the large Leviathan natural gas site, Delek Drilling and Avner Oil Exploration, have signed commitment letters with HSBC and J.P. Morgan for up to $1.75b of financing. However, the funds would go towards the A1 development stage of the project, reported Reuters.

The $1.5-$1.75b loan will be provided against the encumbrance of the partners’ shares in Leviathan, with variable interest due every three months. The principal will be repaid in a single installment after four years through a rising of long-term bonds.

However, the companies that own the rights to Israel’s largest natural gas are to securing the $4b financing needed to develop the field, according to Bloomberg.

The A1 development stage for Leviathan includes the supply of gas from Leviathan to the domestic market, Jordan, the Palestinian Authority and other regional agreements, if signed. Furthermore, the Leviathan partners have already signed a number of supply deals within Israel, as well as a $10b contract with Jordan. Leviathan field is expected to start production in 2019 or 2020. Yet, Israel has also been searching for the best way to export the gas, including possible pipelines to Turkey, Egypt and Cyprus.


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