Gazprom makes deal for Israeli LNG

Feb. 27, 2013 at 6:56 AM
Sign up for our Energy Newsletter

MOSCOW, Feb. 27 (UPI) -- Russian natural gas company Gazprom secured a 20-year deal to sell liquefied natural gas from the Tamar gas field offshore Israel, the Delek Group said.

Delek's subsidiaries said a heads of agreement deal was signed by Levant Marketing Corp. and Gazprom's trading arm for the sale of 3 million tons per year of LNG from the giant Tamar natural gas field in the Mediterranean Sea.

Delek said gas from Tamar would be developed using a floating LNG facility in a way that doesn't affect the supply of natural gas to the Israeli market.

Delek in January said natural gas deliveries from the Tamar natural gas field were expected by April. The field is estimated to hold at least 8 trillion cubic feet of gas.

Vitaly Vasiliev, the chief executive of Gazprom's trading division, said the deal solidifies Gazprom's position in the region.

"This is an important milestone for strengthening Gazprom's position in the global LNG market," he was quoted by Russia's state-owned news agency RIA Novosti as saying.

Gazprom aims to diversify its exports options through pipeline alternatives.

Related UPI Stories
Latest Headlines
Trending Stories
Walgreens to sell heroin overdose antidote naloxone without prescription
Hospital mortality drops with lower patient-to-nurse ratio
Kanye West under fire after Bill Cosby tweet
Plus-size model Ashley Graham nabs Sports Illustrated swimsuit spread
IKEA issues recall after glass ceiling lamps crash to ground