Israel-Jordan Sign $500 Million Natural Gas Deal
“When a man’s ways please the Lord, he makes even his enemies to be at peace with him.” (Proverbs 16:7)
n aeriel view of the Israeli gas rig ‘Tamar’ situated about 80 km off the Israeli northern coast. Tamar was the first large-scale hydrocarbon resource discovered in international waters and claimed by Israel. After more than four years of drilling the flow of natural gas from the Tamar gas field has begun. (Photo: Albatross Aerial photography/Nobel Energy/FLASH90)
Under a new agreement signed between Noble Energy and two Jordanian companies, Israel’s Tamar gas field will supply Jordan with 66 billion cubic feet of natural gas. The deal, with a price-tag of $500 million, will take place over a 15 year period.
The agreement to sell natural gas from the Tamar fields is the first to take place outside of Israel. Arab Potash and its affiliate Jordan Bromine will begin receiving the gas in 2016 upon the completion of a pipeline infrastructure.
Noble Energy, the biggest foreign investor in the Tamar gas fields in the Mediterranean, announced the deal. Based in Houston but listed in New York, Noble Energy hopes to expand the contract to a $30 billion partnership. Under the new deal, Israel would become the largest supplier of gas to Jordan.
Gas will be sold to Jordan at a base price of $6.50 per thousand cubic feet but can be increased based on Brent crude oil prices. The intention of Noble and its partners is to expand its gas export agreements in the future with neighboring countries of Israel as well as develop even further the Tamar and larger Leviathan gas fields.
According to a report by Israel’s Channel 2, the Jordanians turned to Israel for gas since natural gas from Egypt has been halted due to increasing terrorist attacks on gas pipelines.
“This deal will pave the way for additional export projects which could enhance regional cooperation as well as provide additional supply to the domestic market and enhanced security of supply through development of additional reservoirs and infrastructure,” said Lawson Freeman, Noble’s Eastern Mediterranean vice president.
The Tamar gas field is believed to contain 10tn cubic feet of natural gas and was opened for pumping in March 2013. Most of the gas output from Tamar will be used for domestic use. The second major gas field, Leviathan, is estimated to hold 18tn cubic feet of gas. Potential customers for Leviathan include Turkey, Cyprus and Egypt. Noble and it’s Israeli partner Delek hope to begin pumping gas from Leviathan in 2017.
Read more at http://www.breakingisraelnews.com/11208/israel-jordan-sign-500-million-natural-gas-deal/#RdI6GBjjDSqYOoYj.99
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