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More gas sold from Chevron’s Mediterranean Sea field under $650 million deal

May 27, 2024
in News
More gas sold from Chevron’s Mediterranean Sea field under $650 million deal
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Home Fossil Energy More gas sold from Chevron’s Mediterranean Sea field under $650 million deal

May 24, 2024,
by

Dragana Nikše

A multi-year contract has been signed with Israel’s Eshkol Power Energies to supply natural gas for the production units at Eshkol power station, said to be one of the largest power plants in the country.

Leviathan field; Source: New Med Energy

The contract, whose value is estimated at $650 million, was signed between partners of the Leviathan gas field – NewMed Energy, Chevron, and Ratio Energies – and Eshkol Power Energies, a joint venture between Ella Power Energies and Taavura Holdings.

The gas supply is set to start once the ownership of the power plant is transferred from Israel Electric Corp. (IEC) to Eshkol Power Energies, expected to be finalized in June 2024. The end date of the contract is December 31, 2031.

NewMed Energy’s CEO, Yossi Abu, noted: “The agreement to supply natural gas from Leviathan to one of the largest power plants in Israel underscores the reservoir’s significance not only as a central energy supplier to the region but also as a strategic energy source for the citizens of Israel and the local economy. This has been and will continue to be our commitment.”

As reported, Leviathan will deliver daily quantities of gas amounting to approximately 0.5 billion cubic meters (bcm) annually for the duration of the contract. The supplied gas is planned to be used for two combined-cycle production units at the Eshkol site.

Additional gas quantities will be provided on an interruptible basis throughout the contract for four steam-powered production units, envisaged to operate as backup in periods of low electricity reserves.

With 22.9 trillion cubic feet (TCF) of recoverable gas, the Leviathan is described as the largest natural gas reservoir in the Mediterranean. Located approximately 130 kilometers off the shores of Haifa, the deep-sea field, comprising four subsea wells, has been producing gas since December 31, 2019.

Last year, the Leviathan partners approved the budget for expanding the existing infrastructure to include a floating liquefied natural gas (LNG) facility, expected to produce 4.6 million tons of LNG per year.

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Copyright for syndicated content belongs to the linked Source : OffshoreEnergy – https://www.offshore-energy.biz/more-gas-sold-from-chevron-mediterranean-sea-field-under-650-million-deal/

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