Gas offshore Israel could fuel West Bank power plant

Offshore staff

TEL AVIV, Israel – Palestine Power Generation Co. (PPGC) has signed a natural gas supply agreement with the partners in two licenses offshore Israel.

According to Delek Group, the 349/Rachel and 350/Amit licensees will provide a total of 4.75 bcm (168 bcf) for a power plant that PPGC intends to build near Jenin in the northern West Bank.

Under the agreement, supplies will start from the beginning of the flow of gas from the deepwater Leviathan field and end after 20 years, or at the date that PPGC has purchased the contracted volume. PPGC also has the right to reduce the amount supplied.

Depending on the actual volumes purchased, the value could range from $1 billion to $1.2 billion.

The agreement remains contingent on development approval for the Leviathan project and other legal approvals, and on closure of financing for the power plant.

Partners in Leviathan are:

Noble Energy Mediterranean 

39.66%

Delek Drilling

22.67%

Avner Oil Exploration 

22.67%

Ratio Oil Exploration (1992)

15.00%

01/06/2014

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