Leviathan field group signs gas sales deal

Partners in giant Leviathan natural gas field awaiting development in deep water offshore Israel have signed an agreement to sell as much as 6 billion cu m of gas to an Israeli power generator.

Partners in giant Leviathan natural gas field awaiting development in deep water offshore Israel have signed an agreement to sell as much as 6 billion cu m of gas to an Israeli power generator.

The value of the deal could reach $1.3 billion, according to Delek Group, a partner in the Leviathan group led by Noble Energy Inc.

The buyer is privately owned Edeltech Ltd., which, with Turkish partner Zorlu, plans to build and operate generating plants fueled by the gas at Ashdod and Mishor Rotem.

The deal was interpreted in the Israeli press as an expression of confidence in development of the field, terms of which have been subject to controversy in Israel. The Leviathan group has entered memorandums of understanding with other potential buyers.

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