Energean plc (LSE: ENOG; TASE: ENOG), managed by CEO Mathios Rigas, announced this morning that it has signed a binding memorandum of understanding (MoU) to provide 12 billion cubic meters (BCM) of natural gas to Dalia Energy's Dalia and Eshkol power plants.
The agreement being finalized is for a period of about 18 years, and is estimated at being worth more than $2 billion. It is part of Energian's strategy to sign long-term contracts with large local customers, according to the company.
Dalia Energy is controlled by the Kibbutzim Energy Company. About six months ago, in June 2024, it acquired for NIS 9 billion, ownership of the Eshkol power plant, which previously belonged to Israel Electric Corp., after a complicated and controversial tender process.
In addition to the gas sale, Energian also announced a major financing deal with Bank Leumi, for a $750 million loan over 10 years, at a variable interest rate. The loan will provide the company with financial flexibility, particularly in managing its existing debt cycle, which is expected to mature in March 2026.
Energean also reported meeting its 2024 production guidance and issued a 2025 forecast of 120,000-130,000 barrels of oil equivalent per day in Israel. In addition, the development of the Katlan gas field is progressing as planned, with production expected to begin in the first half of 2027.
Published by Globes, Israel business news - en.globes.co.il - on January 23, 2025.
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