Tthe Tamar field partners (Noble Energy, operator, with 36%, Negev 2 with 28.75%, Delek Drilling with 15.625%, Avner Oil Exploration with 15.625% and Dor Gas Exploration with 4%) and Union Fenosa Gas (UFG, the 50-50 joint venture of Gas Natural Fenosa and Eni) have executed a non-binding Letter of Intent (LOI) for the supply of natural gas from Tamar, offshore Israel, to UFG's existing natural gas liquefaction facilities in Egypt. The LOI contemplates a contract term of 15 years and a total gross sales quantity of up to 2.5 Tcf (71 bcm) of natural gas, or approximately 440 mcf/d (4.5 bcm/year) over the period.
The price for the natural gas sold will be similar to the contract price in other natural gas sales and purchase agreements for regional export sales from Israel and is based mainly on a linkage to Brent oil prices. All parties are targeting to finalize a binding agreement within a period of six months, which will be subject to the receipt of regulatory approvals in Israel and Egypt.
UFG operates the Damietta liquefaction plant in Egypt (80% stake in the facility), which can process about 5 Mt/year of gas into LNG.