Tamar Partners sign LOI on gas supply to Egypt

The partners in the Tamar gas field, offshore Israel, signed a letter of intent to supply gas to Dolphinus Holdings of Egypt.

“The parties confirmed their intention to carry out exclusive negotiations on an agreement for the supply of natural gas from the Tamar Project to Dolphinius using the existing gas pipeline operated by East Mediterranean Gas (EMG Pipeline) for exclusive marketing to customers in Egypt,” Delek said in a statement on Sunday.

The letter of intent includes several commercial conditions for the proposed transaction, which will serve as a basis for negotiating the binding agreement.

Supply under the binding agreement will be of 250,000 MMBtu per day for a period of 7 years, according to the statement.

“The gas supply will be on an interruptible basis of quantities of surplus gas available to the Tamar Partners from the Tamar Project; however, the Tamar Partners undertake to supply a minimum, cumulative amount of 5 BCM over a period of 3 years. It is the parties’ intention that the gas shall be transported via the IGL transport system to Ashkelon and from there to Egypt using the EMG Pipeline,” the statement said.

The partners in the Tamar field are Noble Energy (36%), Isramco (28.75%), Avner (15.625%), Delek Drilling (15.625%) and Dor Gas (4%).

LNG World News Staff, October 20, 2014; Image: Delek Group