The move paves the way for Energean to begin drawing up plans to develop the reserve, named Katlan.
By JNS
Israel’s Energy Ministry has officially certified the discovery of a new maritime natural gas deposit, the country’s fourth-largest to date.
British-Greek energy company Energean can now begin drawing up plans to develop the field, named Katlan, which is entirely inside Israeli territorial waters.
Israeli Energy and Infrastructure Minister Israel Katz said in a statement on May 31 that there were potentially more reserves yet to be discovered.
“The office under my leadership will continue to develop the natural gas reserves that are in our territory and to promote the exploration and discovery of additional natural gas reserves for the sake of the energy security of the State of Israel and for ensuring a reliable, clean and affordable Israeli energy economy,” said Katz.
Katlan is Israel’s fourth largest gas reserve; Energean is already developing the Karish, Karish North and Tanin offshore reserves, as well as several blocks in the larger Tamar gas field.
“Katlan boasts approximately 68 BCM [billion cubic meters] of natural gas, and we are working diligently to develop it as efficiently as possible to create sustainable value for all our stakeholders. We believe this discovery will open new opportunities for Israeli gas supplies in both local and regional markets,” said Energean CEO Mathios Rigas.
The Israeli ministry had not certified any offshore gas discoveries since 2015.
Earlier this month, the Israeli Cabinet approved a 900 million shekel ($246 million) project to expand natural gas exports to Egypt.
A 65 kilometer (40 mile) pipeline will be constructed along a route between Ramat Hovav, south of Beersheva, and Nitzana, near the Sinai border via Ashalim, allowing for an additional 6 billion BCM of natural gas to be exported to Egypt each year.
The sale of the additional gas is expected to generate 200 million shekels ($55 million) in annual revenue for Israel Natural Gas Lines and hundreds of millions of shekels each year for the government in royalties and taxes.
It will be built by Nativ, a state-owned company that is responsible for the gas system throughout Israel.
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