Greek and Israeli Energy Giants Sign $100 Million Agreement



Pictured from L to R: Energean Israel Country Manager Shaul Zemach; Energean Group CEO Mathios Rigas; INGL Chairman Eitan Padan and INGL CEO Samuel Tordjman (photo credit: INGL)

Energean Oil, an international oil and gas exploration and production company based in Greece which has developed sites in Israel and in the Aegean and Ionian Seas, announced on Monday that it has signed an new agreement.

The new compact calls for Israel Natural Gas Lines (INGL) to supply natural gas from Energean’s floating production storage and offloading facility to the Israeli national gas transmission grid.

The agreement covers the onshore section of the Karish and Tanin infrastructure in the Israeli Exclusive Economic Zone and the onshore section of pipeline which extends to approximately 10 kilometers (six miles) offshore.

Under the agreement, INGL will pay Energean approximately $100 million.

The delivery of these sectors of the pipeline to INGL will take place immediately after natural gas from the Karsis deposit is delivered in the first quarter of 2021.

Yuval Steinitz, the Israeli Minister of National Infrastructure, Energy and Water, stated that “this is an important step in the development of medium and smaller gas fields, which is also based on infrastructure created by INGL.”

He added that the signing of the agreement ”will encourage exploration for gas fields and their development, and will contribute to Israel’s energy security in the future.”

Authorities and private companies from Greece and Israel, along with those of Cyprus, Egypt and other Mediterranean nations, have been strengthening their cooperation in the natural gas exploration and energy sectors for the last several years. Several agreements have been inked between the companies and more are expected to follow in the future.

With information from A.M.N.A.