Delek Group and partners have signed $2b deal to supply gas from the Leviathan natural gas field located in the eastern Mediterranean Sea area, off the coast of Israel to Or Power Energies (Dalia), Energy Business Review reported.
Under the terms of the deal, Or Power Energies will purchase 8.8bcm gas over a 20-year period. The gas will be used to operate Or’s future power station. However, the plans to build the power station have not yet been approved, according to Arutz Sheva. The Leviathan field will enter production stage in 2019 or 2020.
Dalia Power Energies is a joint venture company owned by Energy Economy with 43.3% stake, Hiram Epsilon 43.3%, Sigma Epsilon 3.3% and the Israel Infrastructure Fund 10%.
In November, the Leviathan partners signed a natural gas supply agreement with Paz Ashdod Refinery. As part of the deal, the Leviathan partners will supply approximately 3.12bcm of natural gas for 15 years. The gas will be used by Paz Ashdod for its facilities in Ashdod, Israel.
According to estimates, the Leviathan field has natural gas reserves of 18Tcf, as well as 600mb of oil beneath the gas layer. Noble Energy operates the Leviathan field with a 39.66% stake while Ratio Oil Exploration holds 15% stake. Additionally, Delek Drilling and Avner Oil Exploration own 22.67% stakes each.