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Energean plans to raise Israel FPSO capacity to support higher gas production

The Israeli gas producer Energean is considering raising the capacity of its 8 bcm/year floating production storage and offloading (FPSO) vessel off Israel to 12 bcm/year. The FPSO is expected to process resources from the Karish offshore gas field, which started to produce gas in October 2022 and should reach a production level of 6.5 bcm by the end of 2023. Energean aims to raise gas production by 25% by the second half of 2024 and will thus need to raise its FPSO processing capacity.

Energean owns a 70% stake in the Karish and Tanin offshore gas fields, which have estimated resources of 98 bcm. The Karish project, worth US$1.68bn, consists of a new build 8 bcm/year FPSO and includes a 90 km-long gas pipeline to transport the gas to the coast. It should allow for the sale of 7.4 bcm/year to independant power producers (IPPs) and industrial companies for 16 years. In addition, Energean is considering developing the Olympus area of Israeli gas fields, with estimated reserves of 68 bcm.