The consortium operating the giant Leviathan gas field off Israel has signed a second gas supply contract for gas deliveries from Leviathan.
The consortium will sell a total volume of 13 bcm of gas to I.P.M. Beer Tuvia, which is developing a 430 MW gas-fired power project in the Beer Tuvia Industrial Zone. Gas deliveries will start when the Leviathan gas field enters commercial operation and will stop when the total volume has been reached or after 18 years, whichever is earlier. I.P.M. Beer Tuvia has undertaken to Take or Pay the minimum annual amount of gas in accordance with the scope and arrangements fixed in the Supply Agreement, which is estimated at US$3bn.
This is the second contract in Israel for the Leviathan consortium (Delek Drilling 22.67%, Avner Oil & Gas 22.67%, Noble Energy 39.66%, and Ratio 15%), after a 6 bcm supply contract over 18 years was signed with Edeltech in February 2016.
The Leviathan gas field was discovered in 2010 and is estimated to hold 470 bcm of gas reserves.