- Union Fenosa Gas is considering expediting its negotiations with the companies controlling Israeli offshore gas field
- If successful, gas will be piped to Spain through Egypt
- Deal requires upward of $1.5 billion investment by Tamar partnership.
Spanish energy giant Union Fenosa Gas is said to be considering accelerating its negotiations with the Tamar partnership as well as boost the gas quantities included in the deal, the Bloomberg news agency reported Monday.
The Tamar offshore gas field was discovered some 80 kilometers (50 miles) west of Haifa in 2009 and is believed to have reserves of up to 8.4 trillion cubic feet. The Tamar partnership includes Texas-based Noble Energy and the Delek Group. The two also control the Leviathan, Tanin and Karish offshore gas fields.
A source privy to the negotiations said the current deal was for 6 billion cubic meters of gas per year, adding the companies were also discussing a new pricing arrangement, such as introducing floor prices. The gas is to be piped to Spain through to the Damietta liquefied natural gas plant in Egypt.
UFG and the Tamar partnership have been in negotiations for two years, and have signed a non-binding agreement for about 4.5 bcm over 15 years, Bloomberg reported.
The deal will require an investment of between $1.5 billion and $2 billion from Noble Energy and Delek, earmarked for developing three new harvesting sites in Tamar, as well as upgrading its deep-sea infrastructure.
The Tamar partnership was unavailable for comment.
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