1. Home
  2. Maritime industry news - PortNews
  3. Karish North and second gas export riser online and new GSPA signed

2024 March 1   10:41

Karish North and second gas export riser online and new GSPA signed

Karish North and second gas export riser online Karish North first gas was safely achieved on 22 February 2024, according to Energean's release. The Karish North production well is currently utilising the second gas export riser, the installation of which was completed in December 2023. 

The Energean Power FPSO now has four production wells in operation, increasing well stock redundancy and flexibility to meet the demand requirements of Energean’s gas buyers. New GSPA signed with Eshkol Energies Generation LTD Energean Israel has signed a new GSPA with Eshkol Energies Generation LTD, majority owned Dalia Energy Companies Ltd, for the supply of an initial 0.6 bcm/yr1, rising to 1 bcm/yr from 2032 onwards. 

Energean supplies gas to all four IEC power stations that have been privatised: Ramat Hovav, Alon Tavor, East Hagit and now Eshkol. This new contract is in line with Energean’s strategy to bring competition and security of supply to the Israeli market, and to secure long-term cash flows for its shareholders via its long- term gas contracts. 

The GSPA is for a term of approximately 15 years, for a total contract quantity of up to approximately 12 bcm and represents circa $2 billion in revenues over the life of the contract. The contract contains provisions regarding floor and ceiling pricing, take or pay and price indexation (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.

Topics: