Energean PLC New GSPA signed and Karish Operational Update (9814J)
May 03 2022 - 2:01AM
UK Regulatory
TIDMENOG
RNS Number : 9814J
Energean PLC
03 May 2022
Energean plc
("Energean" or the "Company")
New Gas Sales and Purchase Agreement Signed and Karish Project
Operational Update
London, 3 May 2022 - Energean plc (LSE: ENOG, TASE: ) is pleased
to announce that Energean Israel has signed a new Gas Sales and
Purchase Agreement (" GSPA ") for up to 0.8 bcm/yr.
Mathios Rigas, Chief Executive of Energean, commented:
"We are delighted to have signed a new GSPA of up to 0.8 bcm/yr
for our flagship assets in Israel, delivering on one of our key
milestones for 2022. This is the third in a row for us from the
Israel Electric Corporation ("IEC") power plant privatisation
programme and I want to thank Edeltech and Shikun & Binui
Energy for their continued trust and confidence. I'm pleased to
also confirm that the Energean Power FPSO has sailed-away and we
look forward to delivering first gas from Karish, which remains on
track for Q3 this year."
East Hagit Power Plant Limited Partnership commented:
"This is another important step in the completion of the East
Hagit acquisition, and a further stage of the joint process by
Edeltech and Shikun & Binui Energy to increase competition and
efficiency of the electricity market, for the benefit of Israeli
consumers."
New GSPA signed with the East Hagit Power Plant Limited
Partnership
Energean has signed a new GSPA, representing up to 0.8 Bcm/yr,
to supply gas to the East Hagit Power Plant Limited Partnership ("
EH Partnership "), a partnership between the Edeltech Group and
Shikun & Binui Energy. EH Partnership was the winning bidder in
the IEC East Hagit tender process, the third IEC power plant in the
current series of four to be privatised. Energean is also a
supplier of gas to Ramat Hovav and Alon Tavor, the first two power
stations privatised in the series.
The GSPA is for a term of approximately 15 years, for a total
contract quantity of up to 12 bcm. The contract contains provisions
regarding floor pricing, offtake exclusivity and a price indexation
mechanism (not Brent price linked). The GSPA has been signed at
levels that are in line with the other large, long-term contracts
within Energean's portfolio. The agreement has the potential to
generate revenues of up to $2 billion over the offtake period and
is subject only to buyers' completion of the privatisation process,
including lenders' consent.
Combined with the spot sales agreement signed in March 2022 with
IEC, the agreements have enhanced Energean's gas sales portfolio
towards filling the 8 bcm/yr of capacity on the Energean Power
FPSO.
Operational update - Karish Project
The Energean Power FPSO has sailed-away from Singapore and
Energean remains on track to deliver first gas from Karish in Q3
2022.
Enquiries
For capital markets: ir@energean.com
Maria Martin, Head of Corporate Finance Tel: +44 7917 573
354
For media: pblewer@energean.com
Paddy Blewer, Head of Corporate Communications Tel: +44 7765 250
857
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