The partners at Israel’s 13.7tcf Tamar gas field, led by operator US major Chevron, and Greek firm Energean with its 4.3tcf Karish gas project on 14 April signed separate gas sales deals for a combined 16.5bcm with local firm Kesem Energy to supply a planned 780MW CCGT power station to be built 25km east of Tel-Aviv.
“The Tamar partners undertake to supply the purchaser, on a firm basis, daily gas quantities with a maximum annual cumulative volume of approximately 0.8bcm, starting from the date of commencement of commercial operation of the power station, expected in 2029, and for a period of 5 years or until 1 January 2035,” 16.75% Tamar partner Tamar Petroleum said in a statement to the Tel Aviv Stock Exchange. Tamar Petroleum estimates total revenue from the deal “may amount to approximately $700-800mn.” This implies an expected pricing range of $5-5.6/mn BTU given the total implied volumes of 4bcm. (CONTINUED - 354 WORDS)
