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June 30, 2014 10:45 am

Israel’s Leviathan Strikes $30 Billion Gas Deal With U.K.’s BG Group

avatar by JNS.org

Natural gas from Israel's Tamar field began flowing to customers in 2013. Photo: Screenshot / Youtube.

Natural gas from Israel's Tamar field began flowing to customers in 2013. Photo: Screenshot / Youtube.

JNS.org Partners in Israel’s Leviathan natural gas field have signed a non-binding letter of intent to supply the U.K.’s BG Group with an estimated $30 billion worth of natural gas for its facility in Idku, Egypt.

The preliminary agreement, announced Sunday, comes after supply agreements signed with Jordan and other local countries, making Israel a major local exporter of natural gas. Once the deal is signed and authorized, the natural gas will be sold directly to BG’s Egyptian facility, which has the necessary infrastructure to liquefy it.

BG will receive the gas via a special outlet that will be installed adjacent to the Leviathan field. An underwater pipe will connect the outlet to the BG liquefaction facility in Idku. The draft terms of the deal call for Israel to supply 7 billion cubic meters of natural gas over the course of 15 years.

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