Israeli Offshore Gas Eyes Egyptian LNG Terminals

Partners in Israel’s 10 tcf Tamar offshore gas field plan to ship 440mn cfd to Egypt’s Segas LNG plant. A deal to ship Leviathan gas to Egypt is in the works.

Houston-based Noble energy and its partners in Israel’s 10 tcf Tamar offshore gas field have signed a non-binding letter of intent with Spain’s Union Fenosa Gas to supply natural gas to fuel the 5mn tons/year Segas Liquefied Natural Gas (LNG) liquefaction plant in Damietta, Egypt.

Segas has been mothballed since December 2012 as the Egyptian gas that had fuelled the plant was increasingly diverted to meet shortfalls on the domestic market.

The proposed 15-year Tamar-Union Fenosa deal would see “up to 2.5 tcf,” the equivalent of a quarter of proved plus probable Tamar reserves, sold to Union Fenosa Gas, which has an 80% stake in the LNG facility, Tamar operator Noble says. Union Fenosa Gas is itself jointly owned (50:50) by Spain’s Gas Natural and Italy’s Eni, operator of many gas fields offshore Egypt that (in theory) feed the plant. Egyptian state firms EGPC and EGAS own the remaining 20% of Segas. (CONTINUED - 1018 WORDS)

DATA INSIDE THIS ARTICLE

table Egypt’s Top 5 LNG Buyers (Mn T/Y)