Noble Energy To Supply Gas To NEPCO From Leviathan Fields
Zacks Investment Research | Sep 27, 2016 09:21PM ET
Noble Energy Inc. (NYSE:NBL) announced that it has entered into a gas sales and purchase agreement (GSPA) to supply natural gas from the Leviathan fields to Jordan’s National Electric Power Company Ltd. (NEPCO) for electricity production.
Terms of the Agreement
Under the GSPA, Noble Energy and its Leviathan partners will supply a gross quantity of nearly 1.6 trillion cubic feet (Tcf) of natural gas from the gas field, which translates into 300 million cubic feet per day (MMcf/d), over a 15-year period. NEPCO also has the option to purchase an additional 50 MMcf/d, bringing the total to 350 MMcf/d.
Gross revenue from the deal is expected to touch $10 billion. This is the first export GSPA for the Leviathan field and including the Israel sales contracts, it brings the total contracted volumes to the range of 400–450 MMcf/d.
Another GSPA in Leviathan
Noble Energy has signed another GSPA to supply natural gas from the Leviathan field to Israel’s IPM Beer Tuvia Ltd (IPM). Per the GSPA, Noble Energy and its Leviathan partners will supply a gross quantity of up to 473 billion cubic feet of natural gas to IPM over a period of 18 years. Total gross revenue under the contract is estimated to exceed $2.5 billion.
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