Update: Israel Electric grabs three LNG cargoes from BP

IEC grabs three LNG cargoes from BP

(Updated with a response by a spokesperson for Israel Electric Corporation, 7.4.2016)

Israel Electric Corporation said it has purchased three cargoes of liquefied natural gas from energy giant BP. 

A spokesperson for Israel Electric Corporation confirmed this to LNG World News in an emailed response on Thursday.

Local media reported on Wednesday that the agreed LNG price is cheaper than the state-owned electric utility pays for the domestic gas supplies from the Tamar gas field offshore Israel.

However, the spokesperson declined to comment on the commercial terms of the deal.

According to a report by the Israeli business daily Globe, IEC agreed to pay US$4.9 per million British thermal units to BP, $0.8 cheaper than the gas it buys from the Tamar gas field.

Another report, by The Marker reveals that the chilled fuel will probably be sourced from Trinidad and Tobago’s Point Fortin LNG plant in which UK’s BP owns a stake.

The cargoes will be delivered to the Hadera Deepwater LNG terminal located over 6 miles ( 10 kilometers) offshore Israel.

In 2012, IEC and Excelerate Energy signed a deal under which the latter provided the FSRU Excellence to serve as backup for the Israeli energy company in case of higher domestic gas demand or lower gas production output.

The FSRU Excellence is capable of delivering up to 600 mmcf/d enabling Israel to import up to 2.5 billion cubic feet of natural gas annually, which meets half of Israel’s gas needs.

 

LNG World News Staff

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