New GSPA signed and Karish Operational Update

RNS Number : 9814J

Energean PLC

03 May 2022

 

Energean plc

("Energean" or the "Company")

New Gas Sales and Purchase Agreement Signed and Karish Project Operational Update

London, 3 May 2022 - Energean plc (LSE: ENOG, TASE: א) is pleased to announce that Energean Israel has signed a new Gas Sales and Purchase Agreement (" GSPA ") for up to 0.8 bcm/yr.

Mathios Rigas, Chief Executive of Energean, commented:

"We are delighted to have signed a new GSPA of up to 0.8 bcm/yr for our flagship assets in Israel, delivering on one of our key milestones for 2022. This is the third in a row for us from the Israel Electric Corporation ("IEC") power plant privatisation programme and I want to thank Edeltech and Shikun & Binui Energy for their continued trust and confidence. I'm pleased to also confirm that the Energean Power FPSO has sailed-away and we look forward to delivering first gas from Karish, which remains on track for Q3 this year."

East Hagit Power Plant Limited Partnership commented:

"This is another important step in the completion of the East Hagit acquisition, and a further stage of the joint process by Edeltech and Shikun & Binui Energy to increase competition and efficiency of the electricity market, for the benefit of Israeli consumers."

New GSPA signed with the East Hagit Power Plant Limited Partnership

Energean has signed a new GSPA, representing up to 0.8 Bcm/yr, to supply gas to the East Hagit Power Plant Limited Partnership (" EH Partnership "), a partnership between the Edeltech Group and Shikun & Binui Energy. EH Partnership was the winning bidder in the IEC East Hagit tender process, the third IEC power plant in the current series of four to be privatised. Energean is also a supplier of gas to Ramat Hovav and Alon Tavor, the first two power stations privatised in the series.

The GSPA is for a term of approximately 15 years, for a total contract quantity of up to 12 bcm.  The contract contains provisions regarding floor pricing, offtake exclusivity and a price indexation mechanism (not Brent price linked). The GSPA has been signed at levels that are in line with the other large, long-term contracts within Energean's portfolio. The agreement has the potential to generate revenues of up to $2 billion over the offtake period and is subject only to buyers' completion of the privatisation process, including lenders' consent.

Combined with the spot sales agreement signed in March 2022 with IEC, the agreements have enhanced Energean's gas sales portfolio towards filling the 8 bcm/yr of capacity on the Energean Power FPSO.

Operational update - Karish Project

The Energean Power FPSO has sailed-away from Singapore and Energean remains on track to deliver first gas from Karish in Q3 2022.

Enquiries

For capital markets: [e-mail]

Maria Martin, Head of Corporate Finance   Tel: [phone]

For media: [e-mail]

Paddy Blewer, Head of Corporate Communications  Tel: [phone]

Forward looking statements

This announcement contains statements that are, or are deemed to be, forward-looking statements. In some instances, forward-looking statements can be identified by the use of terms such as "projects", "forecasts", "on track", "anticipates", "expects", "believes", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparable terminology. Forward-looking statements are subject to a number of known and unknown risks and uncertainties that may cause actual results and events to differ materially from those expressed in or implied by such forward-looking statements, including, but not limited to: general economic and business conditions; demand for the Company's products and services; competitive factors in the industries in which the Company operates; exchange rate fluctuations; legislative, fiscal and regulatory developments; political risks; terrorism, acts of war and pandemics; changes in law and legal interpretations; and the impact of technological change. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The information contained in this announcement is subject to change without notice.

 

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