Sharon Wrobel
British-Greek oil and gas company Energean said Thursday it inked an agreement to supply natural gas to Israeli private energy producer Dalia Power Energies in a deal worth $2 billion, as it expects higher production in 2025 bolstered by increased electricity demand in the country.
As part of the deal, Energean will supply natural gas of up to 12 billion cubic meters (bcm) for a period of 18 years from the Karish natural gas field located off Israel’s Mediterranean coast to Dalia Power’s Dalia and Eshkol power plants. Dalia Power Energies supplies about 16% of Israel’s electricity produced from natural gas, according to its website.
“Over the past year we have agreed more than $4 billion in new long-term gas sales agreements in Israel, including the new $2 billion binding terms with Dalia Energy… bringing the total contract value close to $20 billion,” said Energean CEO Mathios Rigas. “With the region’s gas demand continuing to grow from increasing electricity demand and the phasing out of coal, we are well positioned to add new long-term agreements, including potential export contracts, to further grow sales.”
“This aligns with Energean’s strategy to secure long-term and reliable cash flows in Israel,” Rigas added.
Energean acquired the Karish and Tanin natural gas fields located in Israel’s economic waters in the Mediterranean in 2016 as the government sought to increase competition in the domestic energy market. Production from the Karish field started in October 2022.
Listed on the Tel Aviv Stock Exchange, the oil and gas explorer said it aims to double its production in the coming years, primarily through the development of new prospects in Israel, including the Katlan natural gas reserve off the country’s Mediterranean coast. The firm produced 114,000 barrels of oil equivalent in 2024 from continuing operations, of which 112,000 boepd (barrels of oil equivalent per day) came from Israel.
In 2025, Energean sees production increasing to 120,000-130,000 boepd as it expects to sign new long-term gas contracts to meet growing domestic demand and supply potential export markets such as Egypt and other regional and European markets.
“We have also made significant progress on our key strategic operations, including the Katlan development, which is progressing on schedule for first gas in H1 2027,” Rigas said.
Katlan, which holds an estimated 68 bcm of gas, is located between the Energean-owned Karish and Tanin natural gas fields off Israel’s Mediterranean coast. Alongside the gas supply deal, energy firm announced a financial deal with Israel’s Bank Leumi for a $750 million loan that will provide additional funding for the development of the Katlan gas reservoir.
Dalia Power Energies is part of a private consortium that bought the Ashdod-based Eshkol power station from state-owned Israel Electric Corporation in June 2024 as the government seeks to open the electricity market to independent power producers to boost competition with demand for electricity growing.
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