The new floating terminal will enable the Tamar partners to export up to 4.5 BCM of gas to Korea over 15-20 years.
Norwegian company Hoegh LNG will carry out the front-end engineering design (FEED) for the floating liquefied natural gas (FLNG) terminal for the Tamar gas field. The company has been hired by Korean company Daewoo Shipbuilding & Marine Engineering, following the signing of a memorandum of principles between the Korean company and Norwegian company D&H Solutions on November 22 and Tamar partners. The Tamar partners are Noble Energy Inc. (NYSE: NBL) (36%), Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) (28.75%) Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L) (15% each), and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) (4%).
The project is worth $2.5-4.5 billion, and will enable gas from the Tamar gas field to be exported to the Far East through FLNG facilities, which are considered the most sophisticated natural gas infrastructures. Liquefied natural gas is two to three times more expensive in the Far East than in Israel.
The FLNG technology is based on huge floating structures that cool the gas to minus 160 Celsius, and then transfer it into containers. As a result, it is not necessary to build land-based transfer facilities. The FEED stage of the Tamar project is supposed to last nine months, and it will begin at the end of the pre-FEED stage.
At the end of the project, Daewoo will decide whether or not to build a FLNG facility at their shipyards in Korea, which would take 3-4 years. Upon completion of the facility near Israel, the contract stipulates that Tamar will supply Daewoo between 3 and 4.5 billion cubic meters (BCM) of gas annually for 15-20 years.
Hoegh is a leading technological pioneer of LNGs in the world. It currently owns two LNGs and has licenses to build LNG terminals in Florida and the North Sea.
Hoegh president and CEO Sveinung Støhle, said, "We are excited about initiating the engineering work for an LNG FPSO to monetize the gas reserves in the Tamar field in Israel based on Höegh LNG's already developed design. This is a result of Höegh LNG's continuous effort over the past five years to promote technical and economical sound floating solutions for LNG production. We are pleased to work with DSME and the Tamar field owners in jointly developing one of the first LNG FPSOs to come to market. DSME has been our partner for several years and we are confident that together with the other Tamar partners we will design, construct and operate an excellent solution for bringing the Tamar gas to the market."
Published by Globes [online], Israel business news - www.globes-online.com - on December 4, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011
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