SIGNIFICANT NATURAL GAS DISCOVERY MADE OFF ISRAEL’S SHORE. Gog has to be getting ‘nervous.’
The newly-found gas will be added to the previously discovered gas fields increasing Israel’s energy independence.
BY EYTAN HALON APRIL 15, 2019 19:36. Jerusalem Post
Greek energy producer
Energean has discovered a further significant natural gas reserve off Israel’s
coast, the company announced on Monday.
According
to preliminary estimates, the latest discovery in the Karish North exploration
field contains between 28 to 42 billion cubic meters (bcm) of natural gas.
Publicly-listed
Energean will now conduct further evaluations to further analyze resource potential
and determine the liquids content of the discovery.
The
newly found gas will be added to the 45 bcm already discovered at Karish, and
an additional 22 bcm identified at the Tanin gas field, also managed by
Energean.
“We are delighted to be announcing this significant new gas discovery at Karish
North, which further demonstrates the attractiveness of our acreage offshore
Israel,” said Energean CEO Mathios Rigas.
“We have already signed a contingent contract to sell 5.5 bcm of this new
resource, and our strategy is now to secure the offtake for remaining volumes.
We continue to see strong demand for our gas, which we believe will be
supported by today’s announcement.”
Drilling of the initial phase of the Karish North field is now complete, the company
said. Energean will now deepen the well to identify additional energy sources. Once
completed, Energean will return to drilling the three development wells at the
Karish Main natural gas field.
In December 2018, Energean signed a contract with the IPM Beer Tuvia power
plant, 10 km. from the coast, to supply an estimated 5.5 bcm of gas. Future
agreements are likely to focus on both local and major export markets.
The contingent contract, dependent on the results of Energean’s 2019 drilling
program, is significantly more likely to be converted into a firm contract
following Monday’s announcement, the company said.
“Following years of
standstill, natural gas exploration resumed in Israel’s economic waters a month
ago – and the company is already reporting an additional discovery,” said
Energy Minister Yuval Steinitz.
“I congratulate Energean on the large amount of natural gas that has appeared
in Karish North. This is a prelude, which I am sure will herald further
discoveries in the future. If you will it, it is no dream, and Israel
will become a regional energy power.”
Until
large discoveries of natural gas were made off Israel’s coastline in recent
years, few perceived the historically natural resource-poor Israel to be a
significant source of energy.
This perception started to change with the discovery of the Noa gas field off
the shores of Ashkelon in 1999.
The
discovery of more major natural gas fields in Israel since 2009, including
Tamar and Leviathan, has transformed the Jewish state from an energy-dependent
country into an energy supplier, both domestically and abroad.
Israel is now planning to supply former adversaries Jordan and Egypt
with natural gas valued at $26 billion and plans to construct a 2,000-km. pipeline to
supply Eastern Mediterranean gas to Europe.
In January, seven countries hoping to benefit from the region’s newly
discovered resources, including Israel, established the Cairo-based Eastern
Mediterranean Gas Forum.
Several major energy firms, including American oil and gas giant ExxonMobil,
are reportedly considering competing for a new round of offshore exploration
rights, the second auction of its kind in Israel, with bids due to be submitted
by June 17.
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