ICL, Energean Ink MOU for Long-Term Supply of Natural Gas

Israel Chemicals Ltd (ICL) has signed a non-binding memorandum of understanding (MoU) with Energean Israel Limited (Energean) to enter into negotiations for a definitive agreement to supply up to 13 billion cubic metres (bcm) of natural gas at a total consideration of approximately $2 billion over a 15 year period.

The gas will be used to power ICL’s power stations and facilities in Israel. Energean holds licenses to develop the Karish and Tanin natural gas fields in Israel’s territorial waters. The natural gas will be supplied to ICL by Energean from the commencement of Energean’s production of gas from the Karish and Tanin fields.

“The contract with Energean will supply ICL with gas at prices that are more attractive than what ICL currently pays under its existing contracts. ICL is already one of Israel’s largest users of natural gas, and this agreement is in line with our concerted efforts over the past several years to switch to clean energy sources to power all of our production facilities in order to reduce pollutants and preserve the environment,” said Asher Grinbaum, ICL’s acting CEO.