Gas Pipeline to Be Built Off the Israeli Coast

Energean Oil & Gas PLC’s Board of Directors has approved the Final Investment Decision to proceed with the $1.6 billion Karish & Tanin Development Project, located off the Israeli coast.

$405 million of the $460 million raised from Energean’s recent IPO will be used to fund the company’s 70% share in the project, while the remaining 30% will be funded by Kerogen Capital. The project will also be financed through a Senior Credit Facility of $1.275 billion recently underwritten by Morgan Stanley, Natixis, Bank Hapoalim and Société Générale.

In support of the project, Energean has signed long-term agreements with some of the largest private power producers and industrial companies in Israel.  Earlier this month, the company also awarded an Engineering, Procurement, Construction, Installation & Commissioning contract for the FPSO to Technip FMC.

The Karish & Tanin Development Project, which will transport 61 BCM of gas over a period of 16 years, includes the construction of a new Floating Production Storage and Offloading vessel (FPSO) containing natural gas treatment capacity of 800 MMscf/d and liquids storage capacity of 800,000 bbls, along with a 90-kilometer gas pipeline that will connect the FPSO to the Israel’s domestic sales gas grid operated by INGL, the country’s national gas transmission company.

It is expected to be placed in service in the first quarter of 2021.

 

 

 

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