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October 22, 2016 / 20 Tishri, 5777

Posts Tagged ‘Natural gas’

Leviathan’s First Deal Signed With Israeli-Turkish Consortium

Monday, February 1st, 2016

The Leviathan natural gas field is launching its debut into the world of domestic production and foreign export, simultaneously.

The mammoth natural gas field will supply two private companies with its natural resource in a new $1.3 billion contract signed with Edeltech Group (owned by the Edelsburg family) and its Turkish partner, Zorlu Enerji. The partnership purchased six billion cubic meters of gas to be supplied over 18 years.

The field is being developed and is controlled by Texas-based Noble Energy and Israel’s Delek Group. It is believed to contain approximately 22 trillion cubic feet of natural gas.

“We continue to work with all our might to make progress on developing the Leviathan reservoir and to bring the gas to the Israeli economy and its industry,” Delek Drilling CEO Yossi Abu said. “This deal is a harbinger of things to come, and we intend to further promote sales contracts with customers in Israel, Jordan, Egypt, and Turkey,” Abu was quoted by Globes as saying.

Two new power stations will be built for the purpose in Israel. The Tamar station will be located in the Negev next to the Haifa Chemicals plant at Mishor Rotem. That project will cost an estimated $250 million. The Soldad Energy plant will be located nex to CHS in Ashdod, for approximately $125 million.

Contracts have already been signed between the two partners to build the Ramat Negev Energy station, Dorad Energy plant in Ashkelon and the Ashdod Energy station.

Despite the recent plummet in oil and gas prices, Noble Energy’s Israel Country Manager Bini Zomer told Globes on Sunday that if enough contracts are signed, “Despite those challenges, Noble believes that the Leviathan project can move forward based on domestic and export opportunities and because of the positive climate created by the Natural Gas Framework.

“With the continued cooperation and mutual commitment of the regulators, the State of Israel and the lease holders, a Final Investment Decision (FID) can be achieved by the end of 2016 with the flow of gas to domestic and regional markets within 3-4 years from FID and as early as the end of 2019 in accordance to what was articulated in the Framework and the Leviathan leases.”

Hana Levi Julian

New Israeli Gas Field Discovered, ‘Greatest Potential Since Leviathan’

Sunday, January 17th, 2016

ISRAMCO and Modiin Energy LP reported Sunday a new natural gas field has been discovered beneath the waves of the Mediterranean Sea, off the coast of Israel, with “the greatest potential since Leviathan.”

The new gas field was discovered along the borders of the mammoth Tamar gas reservoir. It’s about the same size as Tamar, which currently serves much of Israel’s needs.

The reservoir was reported by Netherland, Sewell & Associates, Inc., in a resources estimate on the Daniel East and West licenses held by the two companies.

According to Tzahi Sultan, who owns part of the controlling interest in Modiin Energy, the Daniel licenses “have the greatest potential since Leviathan.”

Trading in Daniel East and Daniel West was suspended on the Tel Aviv Stock Exchange (TASE) pending the announcement, according to Globes business news service.

“Gas reserves of this order could significantly change Israel’s energy industry,” Sultan was quoted by Globes. “If the potential is realized, the disocvery could help competition in the Israeli gas industry a great deal and could completely change the picture.”

After trading resumed, participation units in ISRAMCO jumped by 8.46 percent, and units in Modiin skyrocketed by 34.3 percent.

“We are excited at the potential that has been revealed for finding gas in the Daniel East and Daniel West licensed,” Modiin Energy CEO Ron Maor said in a statement.

“This is potential of a significant size which, if realized, could represent competition for the currently existing reserves, and improve the country’s energy security. Together with our partners we will carry out drilling to test the potential prospects as soon as possible.

“We hope that the State of Israel will encourage further activity in the potential gas reserves in the Daniel East and Daniel West fields.”

The Tamar gas field was discovered in January 2009, also in the Mediterranean Sea off the Israel coastline. The field is located in Israel’s exclusive economic zone, roughly 80 kilometers (50 miles) west of Haifa in waters 1,700 meters (5,600 feet) deep. The adjoining Tamar South field added even more reserves. Together, the two finds comprised the largest discovery at the time of gas or oil in the Levant basin of the Eastern Mediterranean Sea.

The Leviathan gas field is one of the world’s largest offshore gas finds of the past decade, and is believed to ultimately have the potential to change Israel’s relations with its neighbors. It is located about 47 kilometers (29 miles) southwest of Tamar, about 130 kilometers (81 miles) west of Haifa. It’s about 1,500 meters (4,900 feet) deep in the Levantine basin.

In November 2015, the developers of the Leviathan gas field closed and inked their first gas deal with Egypt.

Hana Levi Julian

Report: Terrorists Tried to Attack Israeli Gas Rig during War in Gaza

Monday, December 7th, 2015

A security official told a Knesset committee the attack during Operation Protective Edge missed its objective of blowing up the rig.

Terrorists in Hamas-controlled Gaza tried to blow up an Israeli oil-shore gas rig during the Protective Edge counter-terror campaign last year, a government official told a Knesset committee.

During the war, as JewishPress.com reported, Hamas claimed to have targeted the Noa offshore gas rig.

Yossi Cohen, who heads the National Security Council, revealed to the Knesset Economics Committee that there have been several attempts to attack offshore rigs, according to Globes.

The Knesset hearing was focused on the controversial gas agreement that Opposition parties are fiercely protesting. Cohen said that Israel must protect the rigs and explained:

We are procuring naval warfare vessels designed for this. The navy is prepared to protect the rigs…. Already during Operation Protective Edge there were attempts to hit our rig but fortunately their weapons are not accurate enough and did not succeed in hitting the rig.

But the weapons in the hands of the terror organizations surrounding us are already more sophisticated and accurate and our vulnerability has increased.

A direct hit on an offshore platform would scare investors away from Israel, sink the shekel, cripple offshore gas supplies and exports and throw the country into a deep recession.

Hezbollah is considered one of the major enemies that would try to wreak havoc with the Israeli economy if war breaks out across the northern border.

Lebanon has claimed rights to Israel’s oil and gas discoveries and has threatened to use force, which practically speaking means using Hezbollah’s advanced weapons and intelligence.

The Jewish Press.com reported here last week that Israel has developed a missile designed to protect offshore rigs not only locally but also for the global energy industry.




Tzvi Ben-Gedalyahu

Israel’s Leviathan Developers Ink Gas Deal With Egypt

Sunday, November 29th, 2015

Developers of the mammoth Leviathan natural gas field beneath Israel’s Mediterranean coastal waters have inked a deal with Egypt. It’s a deal that has had Israel’s government — and that of Cairo — holding their collective breath for months.

Leviathan will start pumping the natural gas to Egypt beginning in 2019 or 2020, for up to 15 years, according to the agreement. The price of the gas includes a floor price and is to be linked to the cost of Brent oil, Reuters reported.

The Leviathan developers and Egypt’s Dolphinus Holdings agreed in last week’s letter of intent to negotiate the terms on the final deal.

Natural gas will be pumped from Leviathan to the Dolphinus Holdings via an existing underwater pipeline, Dolphinus and the Leviathan developers said in a statement to the Tel Aviv Stock Exchange (TASE).

The pipeline was built nearly 10 years ago by East Mediterranean Gas (EMG) when gas was being piped from Egypt to Israel. At the time, EMG had been managing an Egyptian-Israeli gas agreement. But that deal collapsed in 2012 after unending terrorist attacks ended the flow in the gas pipeline that ran through the Sinai Peninsula.

Leviathan, which holds an estimated 622 bcm of gas, is being developed by the Texas-based Noble Energy and Delek Group through Delek Drilling and Avner Oil and Gas. Dolphinus represents Egypt’s non-governmental, industrial and commercial consumers.

“We’ve worked with Dolphinus before and we expect to reach a final agreement quickly,” Yossi Abu, CEO of Israel’s Delek Drilling told Reuters.

“The Egyptian market is thirsty for gas, both for domestic use and for their export facilities. There is a lot of room for cooperation there.”

Dolphinus already agreed earlier this year to a seven-year deal to purchase at least $1.2 billion of natural gas from the Israeli Tamar gas field.

Leviathan is located close to the Tamar field. Cyprus also has a role in some gas field development with Israel as well; the two countries share a common basic with Egypt which gas discoveries have been made.

In addition, the Italian company ENI announced in August of this year that it had discovered one of the largest gas fields in the world off Egypt’s Mediterranean coast. The reserves are estimated at about 30 trillion cubic feet of natural gas, the equivalent of about 5.2 billion barrels of oil.

Abu noted that the discoveries, together with Egypt’s cooperation, have created a natural leadership role in the region for Cairo.

“Egypt is becoming a regional hub through cooperation with the Leviathan and Tamar partners, and together with Israel and Cyprus,” he said.

According to the U.S. Geological Survey, the eastern Mediterranean contains huge gas reserves – estimated at approximately 122 trillion cubic feet.

Hana Levi Julian

Netanyahu Meets with Italian Energy Company on Gas Fields

Thursday, October 29th, 2015


Prime Minister Benjamin Netanyahu spoke with Thursday morning with the CEO of Italy’s state energy company ENI, Claudio Descalzi to discuss off-shore gas fields.

ENI recently shell-shocked Israel’s dreams for getting rich over natural gas by announcing the discovery of a gigantic gas field off the Egyptian coast, a find that is far larger than Israel’s off-shore fields that in themselves were huge.

Prime Minister Netanyahu made the following statement after the meeting:

As part of the growing strategic cooperation between Israel and Italy in a variety of fields, I see great importance to cooperation with Italy also in the field of energy.

He and Descalzi discussed new developments in the eastern Mediterranean basin gas fields, including ENI’s new discovery, and spoke about the future development of the gas fields in Israel’s waters.

They agreed to continue to promote the common interests of the countries and major energy companies in the region, including joint development or transfer of natural gas to different consumers.

Israel’s new infrastructure for Israeli gas might be able to be used by ENI to help transport gas developed off Egypt’s coast.

ENI’s CEO presented the importance of synergies in joint development of natural gas in the eastern Mediterranean through future allocation of resources, as well as through export and transport infrastructure of Israel’s gas.

Jewish Press News Briefs

Deri to Leave Ministry of Economy

Saturday, October 24th, 2015

Aryeh Deri, chairman of the Shas Sephardi Hareidi party, will leave the Ministry of Economy and be given another Cabinet post following the failure of the Netanyahu government to convince him to relinquish authority over the roadmap for governing Israel’s off-shore natural gas fields.

Deri will continue to serve as Minister of the Development of the Negev and the Galilee along with another post yet to be determined. Taking over the Interior Ministry from Silvan Shalom is one possibility, but that could not take place without the agreement the senior Likud member.

The stalemate over the authority for the natural gas development has kept the Knesset from voting on the budget. Once it is passed, probably in mid-November, authorization is expected for the framework for natural gas.

Jewish Press News Briefs

Knesset Approves Natural Gas Outline

Wednesday, September 9th, 2015

The Knesset plenum approved the natural gas outline presented to the lawmakers by the government on Monday.

There was considerable concern prior to the vote as to whether parliamentarians would balk at some of the elements of the deal, but as it turned out, it passed with a healthy majority.

“We have improved the outline. It passed the Cabinet and passed the Knesset by an overwhelming majority,” said Prime Minister Binyamin Netanyahu in a statement following the Knesset session. “There is one more obstacle but when I want to achieve something, I achieve it.

“There will be gas for Israel. I want it for the citizens of Israel, to lower the cost of living, to channel vast sums to the state coffers for energy security. This will be achieved. We are moving forward step by step and overcoming one obstacle after another.

“They told us at the outset: We have not seen the outline so we opened the outline. They told us to improve it; we improved it. They told us to submit it to the Cabinet; we did so and it was approved. They told us to submit it to the Knesset and we approved it by majority vote. Now we have one obstacle left and we will overcome it because it is the right thing for the citizens of Israel.”

Jewish Press Staff

Printed from: http://www.jewishpress.com/news/breaking-news/knesset-votes-to-approve-natural-gas-outline/2015/09/09/

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