Under the terms of the 15-year deal, Noble Energy and the Leviathan partners will supply a gross quantity of approximately 1.6 trillion cubic feet (Tcf) of natural gas from the Leviathan field to fuel NEPCO’s power production facilities.
The gas sales and purchase agreement (GSPA) also has an option to purchase an incremental 50 million cubic feet per day (MMcf/d) for a total of up to 350 MMcf/d.
Eastern Mediterranean senior vice president J Keith Elliott said: "This first export GSPA for Leviathan further underpins the volumes supporting project sanction.
“Including Israel sales contracts, this brings total contracted volumes to between 400 MMcf/d and 450 MMcf/d.
“The approved Plan of Development incorporates an expandable platform, which will enable us to accelerate Leviathan first gas while maintaining the ability to increase production capacity to meet growing future demand.”
Nobel said that the partners are planning to make a final investment decision for Leviathan project as early as the end of 2016.
Noble Energy operates the Leviathan field with a 39.66% stake while Ratio Oil Exploration holds 15% stake. Other partners include Delek Drilling and Avner Oil Exploration holding 22.67% stakes each.
The Leviathan field is estimated to have recoverable natural gas resources of 22 Tcf.
Delek Group president and CEO Asaf Bartfeld said: “Signature of the agreement with Jordan is a formative event in the development stages of the Leviathan field, a sort of first swallow of spring for a range of further agreements for the supply of natural gas from the Leviathan field, which are currently at advanced stages of negotiation.”
In May, the partners in Israel's Leviathan field have signed $3bn deal to supply gas to a private power plant in central Israel.
Image: The Leviathan gas field offshore Israel is estimated to hold 22 Tcf of recoverable resources. Photo: courtesy of num_skyman/ FreeDigitalPhotos.net.
