Energean has signed a deal to sell up to 12 billion cubic meters (BCM) of natural gas over 15 years to a private power plant in Israel, generating revenue of up to $2 billion, the company said on Tuesday.
Energean said its Karish gas field off the coast of Israel is set to come online in the third quarter of this year.
The deal, signed with the East Hagit power plant, represents about 0.8 billion cubic metres (BCM) of gas a year. This, along with previous agreements in Israel, brings it to full capacity of 8 bcmeach year, it said.
The deal, the company said, is dependent on the completion of the privatisation of the East Hagit facility by state-owned utility Israel Electric Corp, including lenders' consent.
Energean is also developing two other offshore projects in Israel and has a number of exploration licences in the country's Exclusive Economic Zone.
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