NOBLE Energy and its partners have signed a non-binding letter of intent with BG International to provide gas from the Leviathan field, offshore Israel, to the company’s facilities in Egypt.
The LOI set out a total gross sales quantity of up to 3.75 trillion cubic feet of natural gas over a 15-year period, or the equivalent of about 700 million cubic feet per day delivered to BG’s natural gas liquefaction facilities over the term.
Delivery of the natural gas to BG is expected at the outlet of the Leviathan floating, production, storage, and off loading vessel, with planned connection to the LNG facilities by way of subsea pipeline, Noble said.
The news comes just over a month after talks between the Leviathan partners and Woodside for the Australian giant to acquire a 25 per cent interest in two of the licences fell through.
Noble senior vice president Eastern Mediterranean, Keith Elliott, said the LOI was more evidence of strong demand for the company’s resources – bringing Eastern Mediterranean gas to global markets.
“Phase 1 of the Leviathan project is designed to provide significant quantities of natural gas to Israel and regional markets,” he said.
“Negotiations with other potential customers for Leviathan natural gas are progressing, and I anticipate additional agreements to be executed this year in support of the development of the first phase of Leviathan.”
A final gas purchase and sales agreement is to be negotiated and will be subject to the receipt of regulatory approvals in Israel and Egypt, the company said.
Noble Energy operates Leviathan with a 39.66% working interest, with Delek Drilling and Avner Oil Exploration holding 22.67% each and Ratio Oil Exploration with the remaining 15%.