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    Golar, Exmar Chase Israeli LNG Contract

Summary

The companies will each prepare design work for the floating LNG unit, but only one will be chosen for its development.

by: Joseph Murphy, Ya'acov Zalel

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Natural Gas & LNG News, Middle East, Liquified Natural Gas (LNG), Premium, Corporate, Exploration & Production, Import/Export, Contracts and tenders, Infrastructure, News By Country, Israel

Golar, Exmar Chase Israeli LNG Contract

Houston-based Nobel Energy and its partners at the Leviathan gas field off Israel are staging a contest for the potential supply of a floating LNG (FLNG) export terminal.

Tel Aviv-listed project partner Delek Drilling told the Tel Aviv stock exchange July 30 that the US’ Golar LNG and Belgium’s Exmar had been hired separately to prepare plans for the proposed plant.

A deal has been signed with Golar LNG on the assessment of the compatibility of a generic front-end engineering and design (Feed) study previously completed by the company for a potential Leviathan FLNG unit, as well as detailed engineering planning of the facility. A second agreement has been reached with Exmar for a new Feed study, as well as detailed engineering.

The plant in question would annually receive up to 3.5-7.0bn m³ of gas and produce 2.5-5.0mn mt of LNG. If the Leviathan partners opt for the project as a means of exporting the field’s gas, either Golar LNG or Exmar will receive a long-term charter contract covering its construction, financing, operation and maintenance.

Leviathan is due to start production under its first stage this year, using a pipeline to pump up to 12bn m³/year of gas to Israel. But its investors have proposed an LNG solution for its next stage. Nobel operates Leviathan with a 39.7% stake, while Delek has a 45.3% interest and local group Ratio Oil Exploration has 15%.

Leviathan's main customers are Jordanian electricity company Nepco and Dolphinus, an Egyptian group, each of them for about 3.5bn m³/yr. Israeli customers, so far, are just a few, except from a short term interruptible contract with Israel Electric Company (ICE).