May 2012, Vol. 239 No. 5

Projects

Gazprom May Buy LNG From Offshore Israel Field

Gazprom is in talks to buy LNG from a huge new field offshore Israel which could strengthen its hand in the booming Asia LNG market, Reuters reported.

The partners in the Tamar field said they signed a letter of intent to begin non-exclusive, non-binding talks with Gazprom Marketing & Trading for the sale of 100-150 Bcf of natural gas a year over 15-20 years starting in 2017.

One of Gazprom’s major goals is to grab a greater share of Asia’s LNG market, especially after talks to supply China with pipeline gas have stalled. The Russian gas export monopoly so far relies largely on sales to Europe of gas pumped through its vast pipeline network, but it is a relatively small player in the Asia market for LNG. Access to Mediterranean LNG would greatly enhance Gazprom’s market position.

In November, South Korea’s Daewoo Shipbuilding & Marine Engineering agreed with field partners Noble Energy, Israel’s Delek Group and Isramco Negev to develop the Tamar field via floating production, storage and offloading vessels. Daewoo said it aimed to produce LNG from the field, with reserves estimated at 9.1 Tcf, starting in 2016.