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Energean announced a positive step in the continued development of its Israeli natural gas operations, signing a supply agreement with the Israel Electric Company, the largest Israeli buyer of natural gas.

IEC CEO Ofer Bloch, left, and Energean CEO Mathios Rigas sign a supply agreement between their companies.

IEC will now have the right to purchase natural gas from Energean’s fields. The gas price will be determined in each period, with purchased amounts determined on a daily basis. Starting upon the commencement of first gas production from Karish, the agreement will be valid for an initial one-year period with an option to extend subject to ratification by both parties.

This is the first agreement of its kind for Energean and represents a significant step in the development of the Company’s position in the Israeli gas market. The agreement will optimize Energean’s gas sales portfolio and ensures full utilization of its FPSO capacity.

"IEC continues to aim to diversify its gas procurement sources, while seeking and finding the lowest and most competitive prices for the benefit of the public,” IEC CEO Ofer Bloch said.

“This is another significant in Energean’s involvement within Israeli’s energy economy.  Alongside first gas production from Karish, expected in Q3 2022, we will continue to expand the natural gas reserves of Israel and the Eastern Mediterranean,” Energean CEO Mathios Rigas said. “Our operations benefit Israel and Israelis in multiple ways, providing both energy security and a new level of market competition; avoiding the potential downside of monopoly supply.”