LNG agreement boosts plant offshore Israel

Levant LNG and Gazprom Marketing & Trading Switzerland AG have signed a heads of agreement covering the sale of LNG from the floating liquefaction plant Levant hopes to install offshore Israel (OGJ Online, Nov. 29, 2012).

If approved, the plant would receive natural gas produced from deepwater Tamar and Dalit fields by the Tamar Partnership, which includes Noble Energy Mediterranean Ltd., Isramco Negev 2 Partnership, Delek Drilling LP, Avner Oil Exploration LP, and DorGas Exploration LP. Levant LNG is a subsidiary of Pangea LNG BV.

Under the new agreement, Levant LNG and Gazprom Marketing & Trading will negotiate the latter’s purchase of 3 million tonnes/year of LNG for 20 years. The purchase amount is estimated to be the total output of the floating LNG plant.

Pangea said the facility would be the world’s first project-financed floating LNG export facility.

A final investment decision about the plant is expected by yearend.