(Alliance News) - Energean Oil & Gas PLC said Tuesday it has signed an agreement with Israel Natural Gas Lines for the handover of the onshore section of the Karish and Tanin infrastructure, as well as the near shore section of pipeline extending to 10 kilometres offshore.
This is part of the infrastructure that will deliver gas from the Karish and Tanin floating production storage and offloading unit into the Israeli national gas transmission grid. Israeli Natural Gas will pay USD102 million to Energean.
The handover to Israeli Natural Gas is expected to become effective shortly after the delivery of first gas from the Karish field in the first quarter of 2021. Once the handover is complete, Israeli Natural Gas will be responsible for the operations and maintenance of the infrastructure.
"The agreement signed with INGL is an important milestone for the Karish and Tanin development, which will start flowing natural gas to the Israeli market in 1Q 2021. This demonstrates the commitment of the Israeli government to the project, and to long term development of gas resources offshore Israel," said Chief Executive Officer Mathios Rigas.
"The infrastructure being built by Energean will enable connection of future gas discoveries to the system, further contributing to Israel's energy security and diversity of supply," Rigas added.
Shares in Energean Oil & Gas were up 0.2% at 832.00 pence on Tuesday.
Energean Oil & Gas (ENOG)