State-run Israel Electric Corp. (IEC) has chosen the Leviathan gas field off Israel's Mediterranean coast for a short-term natural gas supply deal, saying it would lower its costs by up to $175 million.
Leviathan will supply about 4 billion cubic meters of gas once production begins this October until June 2021, although IEC said in a statement there was no minimum purchase requirement.
The deal with Leviathan, which is subject to various approvals, will apply to gas quantities that exceed its minimum it is obligated to buy from the Tamar gas field.
It noted that it has been working to reduce its fuel costs as well as electricity rates and the new deal will save an estimated $145 million to $175 million.
Gas supply after 2021 will come from the Karish field—owned by Energean—once that field comes online.
Leviathan, discovered in 2010 about 120 km (75 miles) off Israel's coast, is one of the world's largest gas discoveries of the past decade. The project operator, Texas-based Noble Energy , owns a 39.66% stake. Delek Drilling holds 45.34% . The nearby Tamar gas field began producing in 2013.
Recommended Reading
BlackGold Capital Acquires Midland Basin Mineral Portfolio
BlackGold Capital said 72% of the net royalty acres in the acquired portfolio are leased by operators in the top quartile of active horizontal rig counts in the Midland Basin.
Kinder Morgan Profit Jumps 26% On Gulf Coast Express Pipeline Strength
U.S. pipeline operator Kinder Morgan reported a 26% rise in quarterly profit on Jan. 22, benefiting from higher gas takeaway from Permian Basin through its Gulf Coast Express pipeline.
People
Collicutt Energy Services Ltd., Calgary, (Toronto: COH) reports Thomas E. Lewis has resigned as vice president, finance, and chief financial officer to pursue other personal and business interests. Cooper Cameron Corp., Houston, (NYSE: CAM) has named Lorne E. Phillips treasurer. Phillips was general manager of Cooper Cameron Valves Canadian operations. Dresser Inc., Austin, Texas, has named Neil H. Thomas worldwide president of its Dresser Wayne division, a supplier of fuel dispensers, pumps, peripherals and point-of-sale and site monitoring systems and software for the retail fueling industry. Thomas was president of...