First agreement inked for commercial use of EastMed pipeline
Baku, Azerbaijan, Jan.3
By Leman Zeynalova – Trend:
Energean company, headquartered in the UK and Greek DEPA have signed a Letter of Intent (LoI) for the potential sale and purchase of 2 billion cubic meters of natural gas per annum from Energean’s gas fields offshore Israel, where Energean is investing $1.7 billion for the development of the Karish & Tanin fields through the FPSO “Energean Power”, Trend reports citing DEPA.
DEPA, as a 50 percent shareholder of the “NATURAL GAS SUBMARINE INTERCONNECTOR GREECE-ITALY-POSEIDON S.A.” (“IGI Poseidon”) – a Joint Venture with Edison S.p.A – is developing the EU Project of Common Interest (PCI) EastMed Pipeline and is a leading player in natural gas supply and retail activities in the Greek and S. E European markets and in the development of major natural gas related infrastructure projects with the objective of enhancing the security and diversification of supply of Greece and the broader region.
Konstantinos Xifaras, CEO of DEPA, said that this is the first agreement for the commercial use of the EastMed pipeline.
“With the present LoI, DEPA expresses its intention to buy 2 BCM of gas, which corresponds to 20 percent of the EastMed’s initial capacity. Thus, a major producer of East Mediterranean gas (Energean) and a key distributor of gas in South East Europe (DEPA) are joining forces to ensure the success of the pipeline,” he added.
The 2,000-kilometer (1,200-mile) EastMed pipeline will be able to carry between 9 and 12 billion cubic meters of gas a year from offshore reserves held by Israel and Cyprus to Greece, and then on to Italy and other southeastern European countries.
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