Greece-based Energean Oil & Gas on Tuesday signed a landmark deal with Israel's Dalia energy group to provide the latter with natural gas from the Karish and Tanin deposits, which are located in the eastern Mediterranean in the Israeli EEZ.
Dalia is billed as Israel's largest private electricity producer, with market demand in the country increasing significantly over recent years.
Specifically, Energean's Israeli subsidiary committed to providing a total of 23 billion cubic meters of natural gas to Dalia Power Energies over the long term, as well as to the latter's affiliated Or Power Energies. The future gas supply aims to fully cover the needs of the Dalia-owned power station at the Tzafit location in southeast Israel and possible future plants that Or Power Energies may construct and operate.
According to Energean CEO Mathios Rigas, the company is preparing a comprehensive development plan for the two deposits, with a decision by the Israeli government over the plan expected within the next few weeks.
Energean Oil & Gas won the rights to exploit the Karish and Tanin deposits in an international tender last December, with estimates of the reserves as high as 2.4 trillion cubic feet of natural gas. The total investment over time is valued at 1.3 to 1.5 billion USD.
