Energean gas resources in Israel 40 times the size of annual Greek needs

The 212 billion cubic meters (bcm) of recoverable prospective natural gas resources included in an updated Competent Persons Report (CPR) by petroleum industry consulting firm Netherland Sewell & Associates (NSAI) for the Israeli portfolio of Energean Oil and Gas, the independent oil and gas exploration and production company focused on the eastern Mediterranean, would cover demand in a country with the consumption patterns of Greece for about 40 years.

Annual natural gas demand in Greece ranges between 5 and 6 billion bcm, roughly forty times less the figure reported by NSAI, an independent consulting firm.

Of the 212 bcm, 86 bcm are located in the Karish and Tanin fields being exploited by Energean in Israel, while the other 126 bcm have been identified at five new blocks, numbered 12, 21, 22, 23 and 31, whose rights were acquired by the energy company last December.

The NSAI report’s findings essentially bolster Energean’s potential to export from its Israeli fields to other markets. Possible export destinations will depend on geopolitical developments and outcomes of various regional pipeline development plans being negotiated in recent years.

A portion of Energean’s offshore Israel natural gas resources could be exported to Cyprus, for example, if a 200-km pipeline plan linking the two countries is developed. A portion of these resources could also be exported to Greece should the ambitious East Med pipeline plan proceed.

A Floating Production Storage Offloading (FPSO) facility being constructed for the development of the Karish field is planned to have an annual natural gas production capacity of 8 bcm.

Also, Energean Israel, an Energean subsidiary holding a 70 percent stake of the aforementioned Israeli fields, has already signed a sale agreement for 4.2 bcm of annual supply to the Israeli market of natural gas reserves already discovered. Given the FPSO’s capacity, a further 4 bcm could be exported.

Energean recently announced a decision to go ahead with exploratory drilling at Karish North. According to an NSAI estimate, this area holds 38 bcm of natural gas resources and 16.4 million barrels of liquid hydrocarbons resources.