Energean signs $2bn deal to supply gas to Kesem plant

(Sharecast News) - Natural gas-focused exploration company Energean has signed an agreement to supply gas to Kesem Energy's new power plant in Israel, worth around $2bn in revenues. The new plant, which is estimated to be operational before the end of the current decade, will be supplied with around 1bn cubic metres of natural gas per year from Energean from around the middle of the 2030s for a 17-year contract period.

The gas sale and purchase agreement (GSPA) represents over $2bn in revenues over the contract period, representing roughly 12.5bn cubic metres of natural gas in contracted supply.

Energean said it has now secured around $20bn in contracted revenues for the next two decades.

"We are pleased to announce the signing of another new contract, this time with Kesem, whose new planned power plant demonstrates the robust and growing long-term demand for natural gas in Israel," said chief executive Mathios Rigas.

"Energean has been a major underwriter of both energy security and transition in Israel and the broader region. We are delighted to continue to meet the needs of Israeli clients and society."

The new GSPA contains provisions regarding floor pricing, which Rigas said "safeguards our operations and investments against global financial and commodity price volatility".