Energean signs MOU with INGL on infrastructure transfer

Energean Oil and Gas on Monday said it had signed a memorandum of understanding (MOU) with Israel Natural Gas Lines (INGL) worth $98m.

The MOU is for the transfer of title of the near shore and onshore part of the infrastructure that will deliver gas into the Israeli national gas transmission grid, the company said.

The gas will be transported from the Karish and Tanin floating production storage and offloading vessel. Energean expects the detailed agreement to be signed in the first quarter of 2019.

Energean said it expected 15% of the cash to be paid and contribute to available liquidity in early 2019 with a majority 80% available at hand over, and the rest due after an 18 month warranty period.

The MOU covers the onshore section of the Karish and Tanin infrastructure and the near shore section of pipeline extending to approximately 10km offshore, Energean said.

“It is intended that the hand over to INGL will become effective shortly after the delivery of first gas from the Karish field in 1Q 2021,” the company said in a statement.

“Following hand over, INGL will be responsible for the operation and maintenance of this part of the infrastructure. Energean will not incur any charges or tariffs for use of this infrastructure.”