US energy giant Chevron and its partners in the Tamar natural gas reservoir off Israel’s Mediterranean coast announced Thursday that they have okayed a final investment decision (FID) needed to proceed with the first phase of expanding natural gas production to meet growing domestic demand and boost exports to Egypt.
As part of the FID, the partners in the Tamas natural gas rig, located some 90 kilometers (55 miles west of Haifa, are expected to invest some $673 million in a project expanding gas production from the offshore field.
Chevron provided details of a two-stage plan aimed at expanding production to about 1.6 billion cubic feet (BCF) of natural gas from the Tamar field to meet Israel’s energy needs and export gas to Egypt and neighboring countries.
Chevron operates and holds a 25% stake in the Tamar gas field. The partners in the Israeli gas reservoir include Isramco, which holds 28.75% of the rights in Tamar; Abu Dhabi’s Mubadala Energy, which holds 22%; Tamar Petroleum, which holds 16.75%; Dor Gas with 4%; and Everest with 3.5%.
In the first phase of the natural gas expansion project, a 150-kilometer pipeline will be laid from the Tamar field to the platform. The adjustments are expected to support the daily supply of production of 1.2 billion cubic feet of natural gas, up from the current 1.1 billion cubic feet. Work on the first phase is scheduled for completion in early 2025.
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“Reaching an FID for Phase One of Tamar’s expansion reflects Chevron’s ongoing commitment to supporting the State of Israel’s strategy to develop its energy resources for the benefit of domestic and regional natural gas markets,” said Jeff Ewing, managing director of Chevron’s Eastern Mediterranean business unit.
The second stage of the expansion will be secured by a new gas sales agreement with Tamar’s existing customer in Egypt and supported by transportation agreements to allow for better gas transportation routes between Israel and Egypt, Chevron said.
“When completed, this project will enable us to meet Israel’s growing domestic demand, increase our natural gas delivery to neighboring countries and supply the world whose need for affordable, reliable, ever-cleaner energy continues to grow,” said Ewing.
The investment decision on the second phase of the expansion project will be subject to customary regulatory approvals, including the issuance of an export permit by Israel’s Energy Ministry, Chevron said. Completion of the second stage of expansion of natural gas production is expected in the second half of 2025.
Back in June, Chevron signed a memorandum of understanding with state-owned Egyptian Gas Holding Company (EGAS) to explore cooperation on the transport, import, liquefication, and export of natural gas from the east Mediterranean to Egypt.