The partners in the Leviathan natural gas field today announced the signing of a gas supply agreement with the IPM company, a new private power plant in central Israel. The deal worth as much as $3 billion.
This is the second contract for the partners. In January Leviathan signed a $1.3 billion gas supply contract with Edeltech, Israel’s largest private power producer, owned by Edelsberg family.
Leviathan, one of the largest Israel’s offshore discoveries has an estimated 622 cubic meters of natural gas (BCM) of reserves which will cost more than $5 billion to develop. It is expected to become operational in 2019. Partners are American Noble Energy, Israeli Delek Group and Israel’s Ratio Oil Exploration.
Under the deal, Leviathan will provide up to 13 billion BCM, over 18 years to the IPM plant in Be’er Tuvia once gas starts flowing from Leviathan.
The IPM power station is controlled by Triple M and Israel Power Management 3000. It will bilt on a 62-dunam (15.5-acre) site, and will produce 430 megawatts of electricity using combined cycle power technology (natural gas as the main fuel and diesel oil as a backup).