Noble Energy has executed a non-binding Letter of Intent (LOI) to supply gas from its ultra-deepwater Leviathan discovery in the eastern Mediterranean Sea offshore Israel to the National Electric Power Company Ltd. (NEPCO) of Jordan.

Under terms of the LOI, Noble and the Leviathan partners will supply a base gross quantity of 1.6 Tcf of gas from the field over a 15-year term. Sales volumes under the agreement are anticipated to begin at a rate of 300 MMcf/d.

Delivery is expected to occur at a border location between Israel and Jordan, following the completion of related pipeline infrastructure. The price for the gas is based primarily on a linkage to Brent oil prices and is dependent on negotiations of a binding agreement.

A final gas purchase and sales agreement is expected to be completed this year and will be subject, among other conditions, to the receipt of regulatory approvals in Israel and Jordan.

Keith Elliott, Noble’s senior vice president, Eastern Mediterranean, said: “We look forward to working with NEPCO and supporting economic prosperity across the region through development of these world-class energy resources. This LOI and other recent regional export arrangements are advancing the first phase of development at the Leviathan project, which is being designed with capacity for 1.6 Bcf/d of natural gas. As we continue to mature the technical design of the project, we are making good progress on the marketing side. We now have over 60% of Leviathan’s initial capacity and 80% of targeted initial sales volumes secured with LOIs.”

Noble’s first phase of development for Leviathan revolves around a 1.6 Bcf/d FPSO that will pipe the gas to various shore locations, with a second phase expected to use an FLNG facility for export options further afield.

Offshore