Israel seeks LNG cargoes for import facility to replace cancelled Egypt pipeline supply

Thursday, 26 April 2012

Talks are continuing with Excelerate Energy for an offshore import facility using one of the US company's regasification vessels that would send natural onshore by a short pipeline to Hadera, the Israeli company said.

Government-owned Israel Natural Gas Lines is overseeing the project and additional equipment is being provided by Italian company Micoperi and Norway's APL.

The IEC tender seeks 10 LNG cargoes for five months and with an option for a further six before Tamar field pipeline gas starts flowing by mid-2013.

However, the IEC deal with Excelerate to supply an FSRU to act as a regasification facility offshore Israel has yet to be finalized.

IEC has signed a 15-year agreement with Noble Energy and its partners in the Tamar project to receive 5 billion cubic metres per annum of pipeline gas from the field from 2013.

Israel will also receive pipeline gas from the even larger Leviathan field when it is developed by Noble in the East Mediterranean.

Israel could be on track to be self-sufficient in natural gas from the East Med. Some of its companies are also key stakeholders in an LNG export project linked to the Tamar field.