Noble Energy announced that it has signed an initial agreement to sell natural gas to Union Fenosa Gas’s (UFG) existing gas liquefaction facilities in Egypt for the next 15 years
The non-binding Letter of Intent (LOI) between the Tamar field partners and UFG details the supply of natural gas from Tamar, offshore Israel, to UFG's existing LNG liquefaction facilities in Egypt, Noble Energy said in a statement.
The LOI contemplates a total gross sales quantity of up to 2.5 trillion cubic feet of natural gas, or approximately 440mn cubic feet per day over the period.
“This LOI with Union Fenosa Gas represents a major milestone for our Tamar asset and is indicative of the strong regional demand for natural gas.
“The associated expansion of the Tamar field facilities, subject to final investment decision of the Tamar partners, will not only enable substantial regional exports, but it will also increase the capacity for natural gas deliveries to Israel’s domestic market, ” said Keith Elliott, senior vice president, Eastern Mediterranean, Noble Energy.
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.
Noble Energy operates Tamar with a 36 per cent working interest. The Tamar field has an estimated 10 trillion cubic feet of discovered natural gas resources.