The partners in the Leviathan gas reservoir notified the Tel Aviv Stock exchange this morning that a non-binding letter of intent had been signed with private power producer Edeltech, in which the two sides confirm that they will conduct negotiations on an agreement for the supply of natural gas from Leviathan to Edeltech.
The estimated scope of the agreement is 14.8 BCM (billion cubic meters) of gas over 17 years. Edeletch will commit to buying a minimum quantity of gas, with the price linked to the electricity production tariff.
In December, Avner Oil and Gas LP (TASE: AVNR.L), Delek Drilling, and Ratio Oil Exploration (1992) LP (TASE:RATI.L) approved the development plan for the Leviathan reservoir, the work plan, and the proposed budget of stage A of the reservoir, with a view to a final investment decision.
Production from the reservoir is due to begin by the end of 2019, with gas starting to flow in the first quarter of 2020.
Published by Globes [online], Israel business news - www.globes-online.com - on January 17, 2017
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