Leviathan Partners Consider Selling Gas to Edeltech

Leviathan Partners Consider Selling Gas to Edeltech

Noble Energy and its partners in the Leviathan gas field offshore Israel are working towards sealing another gas off-take deal ahead of the expected final investment decision (FID) for the project, Offshore Energy Today reported.

Noble’s partner Delek said that a non-binding letter of intent was signed with Edeltech for the supply of natural gas from the Leviathan field. Based on prices under similar agreements signed in the region, the deal could be worth around $3b, according to Reuters.

While Edeltech committed to buy 6 bcm of gas from Leviathan for its power plants in 2016, Delek estimates the Binding Agreement to be for the supply of a total quantity of approximately 14.8 bcm for a period of 17 years. The price of the gas would be linked to the electricity production tariff, as determined by the Electricity Authority.

Leviathan, which is expected to start production in December 2019, was discovered in the eastern Mediterranean in 2010. Much of its estimated 622bcm of gas is earmarked for exports.


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