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Noble to expand Israel Tamar to feed Egypt Damietta LNG Terminal

Noble and Union Fenosa Gas signed Tamar gas supply

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe Texas-based companies Noble Energy (Noble) and Isramco Negev and their Israeli partners Delek Drilling, Avner Oil Exploration (Avner) and Dor Gas Exploration ( Dor Gas) signed a non-bidding letter of intend (LOI) with Union Fenosa Gas SA (UFG), the joint venture between Gas Natural from Spain and Eni from Italy, to supply natural gas from the Tamar field offshore Israel to the Spanish-Italian group operated Damietta liquefied natural gas (LNG) terminal in Egypt.

In 1999, BG Group (BG) from UK and Israeli partners won an exploratory license in the Block Matan as part of the Levant Basin in the Eastern Mediterranean Sea, along the coast of Israel.

From seismic campaigns, BG could detect large gas fields offshore Haifa but left the joint venture in 2005 before starting any drilling operations.

Noble_Tamar_Expansion_To_Union-Fenosa-Gas_Damietta_LNG_MapNoble joined in 2006 with the other partners moving in and out the joint venture to the current situation whereas:

 – Noble 36% is the operator

 – Isramco Negev 28.75%

 – Delek Drilling 15.625%

 – Avner 15.625%

 – Dor Gas 4%

In 2009, Noble and its partners drilled the first exploratory well and discovered the Tamar field by 240 meters water depth and 4,900 meters of total depth.

With 10 trillion cubic feet (tcf) of proven and possible (2P) reserves, Tamar provides Israel with the opportunity to become a major exporter of LNG in the Mediterranean Region.

Noble to expand Mari-B platform pipe gas to Damietta

In 2013, Noble and its partners Isramco ,Negev, Delek Drilling, Avner and Dor Gas started the first production out of the Tamar gas field.

Since the Leviathan Basin is containing gas reserves for hundreds years of Israel consumption, Noble and its partners are investigating opportunities for exporting gas to neighboring countries.

In parallel, Union Fenosa Gas had to face shortage of gas supply in its Egypt Damietta LNG export terminal, leading to tension with its local partners Egypt Gas (EGAS) and Egypt Petroleum Corporation (EGPC).

Noble_Tamar_ExpansionAs a joint venture between Gas Natural and Eni, Union Fenosa holds 80% stake in Damietta LNG while the remaining 20% are split between EGPC and EGAS.

Unfortunately the troubles in Egypt had the direct consequence to prevent any agreement on the gas prices and the Government, thus to stop the exploration required to maintain the gas production high enough to supply the domestic market and the export demand through LNG terminal such as Damietta.

Therefore Union Fenosa is keen to substitute gas supply from countries such as Israel to load its Damietta LNG Terminal in the meantime Egypt gas production may ramp up again high enough to enable LNG exportation.

With the LOI, Noble would export 440 million cubic feet per day (cf/d) to Union Fenosa.

To do so Noble and its partners are considering $2 billion capital expenditure for the expansion of the existing Tamar Mari-B platform with three additional production wells and a subsea export pipeline to Damietta.

Assuming the LOI to be converted in formal contract on early 2015, Noble and its partners Delek Drilling, Isramco Negev, Avner, and Dor Gas are expecting to start first export of natural gas from Tamar to Union Fenosa Gas Damietta LNG terminal in Egypt.

For more information about oil and gas and petrochemical projects go to Project Smart Explorer

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