Oil & Gas

Israel to develop more natural gas exports

July 24, 2024, 2:06 PM

An Energean survey team in Israel. Once operable, gas from the company's Katlan field will be available for export

Energean developing Katlan field
1.1 trillion cubic feet capacity
Available for export market

UK oil and gas company Energean has agreed the $1.2 billion development of the Katlan offshore gas field in Israel, with output set to start in the first half of 2027.

The production will underpin Energean’s existing gas sales agreements with Israeli clients and target international markets.

Katlan – owned and operated by Energean – contains 1.1 trillion cubic feet of proven and probable gas reserves. It is near the Karish and Karish North fields, which are also operated by Energean.

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The fields are expected to produce around 7.5-8 billion cubic metres (265-282 billion cubic feet) a year, Energean’s spokesperson said.

Export of output from Karish and Karish North is banned as the gas produced is intended to supply the domestic Israeli market. However, the Katlan project does not have any such restrictions and “there is a potential” that gas from the field will go to Egypt, the spokesperson said.

When it began in 2020, Energean’s production freed up output from other gas fields – such as Leviathan and Tamar – for exports.

Leviathan, one of three Israeli offshore gas fields, is one of the largest in the Mediterranean. The nearby Tamar is a major source of Israel’s gas for power generation, and around 20 percent of its output is exported.

Israel exports around 90 percent of its production, mainly to Egypt and Jordan. Egypt’s gas production has declined to its lowest since 2018, plunging it into a deep power crisis.

Mathios Rigas, CEO of Energean, said: “By developing Katlan, we will unlock further value in the Israeli subsurface that will provide additional energy security and drive sustainable development, both in Israel and the broader region.”