Tamar partners to sell gas to Gazprom unit

Gazprom will buy liquefied gas from the floating production storage units being built by Daewoo for the Tamar field.

22 March 12 09:38, Amiram Barkat and Guy Katsovich

The Tamar partners last night reported that they have signed a non-binding letter of intent to sell liquefied gas to Russian giant Gazprom (RTS: GAZP; LSE: OGZD; DAX: GAZ) unit Gazprom Marketing and Trading Switzerland AG (GM&T).

Both sides agreed to conduct non-exclusive talks for the sale of natural gas from a floating liquefied natural gas buoy (FLNG) that will begin to produce 2-3 million MTPA of gas annually from 2017 over a period of 15-20 years. Under the agreement, the price of gas will be set according to the price of natural gas in Asia.

The Tamar partners had previously signed an agreement with Korea's Daewoo Shipbuilding & Marine Engineering Co. (KSX: 42660) to build LNG-floating production storage and offloading units.

The Tamar partners stressed that the agreement with Gazprom will not harm their ability to meet their commitments to provide natural gas to the Israeli market.

The Tamar partners are Noble Energy Inc. (NYSE: NBL) 36%), Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) (15.625% each), Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) (28.7%) and Dor-Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Alon Natural Gas Exploration Ltd. (TASE: ALGS) (4%).

Published by Globes, Israel business news - www.globes-online.com - on March 22, 2012

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