A plan submitted by Energean Oil & Gas to Israeli authorities for the development of the Karish and Tanin offshore natural gas fields has been approved by a special state committee.
The Greek oil and gas company has reached gas sale agreements in the Israeli market based on annual production forecast to reach a total of 4 billion cubic meters from these fields.
“The plan represents yet another step forward for the Israeli energy sector and indicates that it is in line with the timetable set,” noted Israel’s energy minister Yuval Steinitz. “The implementation of the plan for small-scale deposits endorsed by the government promotes their development, strengthens competition and reduces prices for new contracts,” he added.
Based on the plan submitted by Energean Oil & Gas, the Karish offshore gas field will be developed first, while Tanin will follow, depending on overall gas demand and the progress of development at the Karish field.
It is estimated that the two gas fields possess 55 billion cubic meters of natural gas, while production is expected to commence in 2020.
A floating, production, storage and offloading (FPSO) unit will be developed 90 kilometers from the Israeli coastline, along with submarine transmission infrastructure, for extraction. The plan also includes an 80-kilometer pipeline to carry natural gas to Israel’s main network.
The pipeline infrastructure’s transmission capacity will exceed current needs in order to cover additional capacity that may be required in the future.