Energean has signed two new gas sales and purchase agreements with RH Partnership for a combined 1.4 bcm/year of gas supply from the Karish gas project offshore Israel to RH Partnership's power plants. It will supply gas to the 335 MW Ramat Hovav gas-fired power plant, that RH Partnership, a consortium of Edeltech Group and Shikun & Binui, acquired from the Israel Electric Corporation in June 2020, over a 20-year period. It will also supply gas to RH Partnership's other gas-fired power plants over a 15-year period. The two agreements represent revenues of more than US$2.5bn over the life of the contracts.
Energean took the Final Investment Decision (FID) to proceed with the development of the Karish and Tanin gas projects in March 2018. The company owns 70% in these two gas projects, in partnership with Kerogen Capital (30%). Total gas sales and purchase agreements now stands at 7 bcm/year.
Total reserves across the Karish, Tanin and Karish North are estimated to be almost 3.5 tcf (99 bcm) of gas plus 82 mbl of liquids, i.e. a total of 698 Mboe (88% of which is gas). These reserves will be developed and commercialised via a tie-back to the 8 bcm/year Energean Power FPSO, which is located 5.4 km from the Karish North well. Gas will be shipped through a 90-km long gas pipeline to the Israeli coast. The infrastructures are expected to be commissioned in 2021.