Exploration and production company Energean has signed a 15-year transmission agreement with state-owned pipeline operator Israel Natural Gas Lines to supply gas for the Nitzana pipeline. The agreement will see Energean provide up to one billion cubic meters of gas per annum to the infrastructure project connecting Israel’s Leviathan gas field to Egypt.
Under the terms of the agreement, Energean will assume a 16.4 percent share of the construction costs of the pipeline and compression station, estimated at approximately $100 million. This will be funded through a $70 million, 10-year loan facility secured with financial institution Bank Hapoalim.
“Energean is well-positioned as a key regional player, and we remain focused on advancing all export opportunities from our Israeli assets, in the best interests of our shareholders, the Israeli gas market and the region,” stated Mathios Rigas, CEO of Energean.
The Nitzana pipeline will transport 600 million cubic feet of gas per day, with construction expected to be complete in three years. Once operational, the pipeline is expected to increase Israel’s total export capacity to Egypt to upwards of 2.2 billion cubic feet, strengthening energy cooperation between the two nations and enhancing regional energy security.
Source: energycapitalpower.com