Tamar partners sign Daewoo FLNG engineering design stage deal

The Tamar partners today announced the successful completion of the preliminary front end engineering design for the FLNG.

There has been significant progress in the development of the Tamar offshore gas field, irrespective of the construction of onshore infrastructures. Tamar's partners - Noble Energy Inc. (NYSE: NBL), Delek Group Ltd. (TASE: DLEKG), Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L), and Alon Natural Gas Exploration Ltd. (TASE: ALGS) - today announced the successful completion of the preliminary front end engineering design (Pre-FEED) for a floating liquefaction plant (FLNG).

The project will now move to the FLNG project's FEED stage, which will take 6-9 months. The usual cost of the FEED stage is $100 million, but the Tamar partners believe that the actual cost will be less because of the characteristics of the project in the Mediterranean. The Tamar partners today signed an agreement with Daewoo Shipbuilding & Marine Engineering Co. Ltd., Pangea LNG BV, and Levant LNG Marketing Corporation to carry out this stage of the project.

Delek has promised to finance up to $15 million of the FEED stage cost, and the rest will be financed the Daewoo-led consortium.

The FLNG will have a three million ton annual capacity, equal to 4.5 billion cubic meters of gas.

Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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