Under the terms of the deal, Dalia will receive 8.8 billion cubic meters of gas for up to 20 years once the Leviathan field enters production stage in 2019 or 2020.
The purchased gas will be used by wholly-owned subsidiary of Or Power Energies, which is an associated company of Dalia Power Energies, to fuel a planned power plant project.
Delek Drilling and Avner CEO Yossi Abu was quoted by Globes as saying: "After signing the financing agreement for developing the first stage of Leviathan, we are happy to join up with a veteran partner in Israel's natural gas revolution, Or Energies, which becomes a customer in the historic project of developing the Leviathan field.
“Natural gas from Leviathan will facilitate the construction of more power stations producing electricity from natural gas, and allowing the Israeli economy to move another step ahead toward clean, efficient and more cost-effective production for the benefit of all of us."
Dalia Power Energies is a joint venture company owned by Energy Economy with 43.3% stake, Hiram Epsilon 43.3%, Sigma Epsilon 3.3% and the Israel Infrastructure Fund 10%.
In November, the Leviathan partners signed a natural gas supply agreement with Paz Ashdod Refinery.
As part of the deal, the Leviathan partners will supply approximately 3.12 billion cubic meters (BCM) of natural gas for 15 years. The gas will be used by Paz Ashdod for its facilities in Ashdod, Israel.
According to estimates, the Leviathan field has natural gas reserves of 18 trillion cubic feet (tcf) as well as 600 million barrels of oil beneath the gas layer.
Noble Energy operates the Leviathan field with a 39.66% stake while Ratio Oil Exploration holds 15% stake. Additionally, Delek Drilling and Avner Oil Exploration own 22.67% stakes each.
Image: The Israel’s Leviathan field is estimated to hold natural gas reserves of 18 trillion cubic feet. Photo: courtesy of num_skyman/FreeDigitalPhotos.net.
