Israel’s natural gas companies and Noble Energy Inc. have signed the first contract to supply fuel from the country’s largest gas reserves, the offshore Leviathan field.
Partners in Leviathan will supply 6 billion cubic meters of gas over 18 years to two power stations owned by local electricity producer Edeltech Group, according to a statement filed to the Tel Aviv Stock Exchange. Under a government program for the country’s gas industry approved last month, Leviathan will be developed by Texas-based Noble with Delek Drilling LP and Avner Oil Exploration LP, units of Israel’s Delek Group Ltd.
“This deal marks a beginning. We are advancing more agreements with customers in Israel, Jordan, Egypt and Turkey,” Yossi Abu, Delek Drilling’s chief executive officer, said in an e-mailed statement. “Development of the Leviathan field will ensure Israel’s energy security and gas export contracts from the site will strengthen the country’s geopolitical position in the region.”