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Israel, Jordan sign $500m gas deal
Posted By Viva Sarah Press On February 20, 2014 @ 6:42 am In | No Comments
Noble Energy, on behalf of the partners in the Tamar natural gas field off the coast of Israel, has signed a $500 million gas supply deal with Jordanian companies. Under terms of the agreement, Noble Energy will begin supplying natural gas in 2016 to Arab Potash and Jordan Bromine for use in their facilities near the Dead Sea.
The agreement is for an initial term of 15 years and a total gross contract quantity of approximately 66 billion cubic feet of natural gas.
“The execution of this agreement evidences the growing regional opportunities for our natural gas and brings forward value for the Tamar asset. We have now signed the first regional export agreements for both Tamar and Leviathan, and we are in a number of additional negotiations to sell significant quantities of natural gas from both fields to multiple customers,” said Keith Elliott, Noble Energy’s Senior Vice President, Eastern Mediterranean.
According to an Israeli Channel 2 report, the Jordanians turned to Israel because their supply of natural gas from Egypt has been halted by repeated terrorist attacks on the gas pipeline there.
Reports indicate that the deal could be expanded to a whopping $30-billion partnership, and would make Israel the major supplier of the Hashemite Kingdom’s gas needs.
Channel 2 reported that Israel is also exploring possible gas exports to Turkey.Photo by Shutterstock
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