Energean agrees transfer of pipeline infrastructure in Israel
By Josh White
Date: Tuesday 25 Jun 2019
(Sharecast News) - Energean Oil and Gas has signed a detailed agreement with Israel Natural Gas Lines (INGL) for the transfer of title of the near-shore and onshore part of the infrastructure that will deliver gas from the Karish and Tanin floating production, storage and offloading (FPSO) facility into the Israeli national gas transmission grid.
The FTSE 250 firm had signed a memorandum of understanding with INGL in December last year.
As consideration, it said INGL would pay Energean 369 million Israeli new shekels ($102m), which would be paid in accordance with milestones detailed in the agreement.
The agreement covered the onshore section of the Karish and Tanin infrastructure, and the near-shore section of pipeline extending to approximately 10km offshore.
It was intended that the hand over to INGL would become effective shortly after the delivery of first gas from the Karish field in the first quarter of 2021.
Following hand over, INGL would be responsible for the operation and maintenance of that part of the infrastructure.
Energean would not incur any charges or tariffs for use of the infrastructure.
"The agreement signed with INGL is an important milestone for the Karish and Tanin development, which will start flowing natural gas to the Israeli market in the first quarter of 2021," said Energean chief executive officer Mathios Rigas.
"This demonstrates the commitment of the Israeli government to the project, and to long term development of gas resources offshore Israel."
Rigas said the infrastructure being built by Energean would enable connection of future gas discoveries to the system, further contributing to Israel's energy security and diversity of supply.
"We thank INGL management and professional team for the collaboration - we look forward to developing more projects together in the future."
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