Israel’s NewMed Energy looks at floating LNG expansion

Israel’s NewMed Energy looks at floating LNG expansion
Israel’s NewMed Energy looks at floating LNG expansion

JERUSALEM, Nov 24 (Reuters) – Israel’s NewMed Energy (NWMDp.TA) said on Thursday it was considering building a floating liquefied national gas (FLNG) terminal to further develop its offshore Leviathan gas field. of the Mediterranean coast of Israel.

The company considered two options: an FLNG terminal which received support from the Israeli government, or a pipeline connection to LNG terminals in northern Egypt to facilitate exports further afield as Europe seeks energy supplies. not Russians.

“The float (LNG terminal) is really where we are going right now,” chief executive Yossi Abu told Reuters after NewMed reported third-quarter financial results that beat estimates.

At the same time, NewMed plans to spend $550 million to build a new pipeline to its platform to increase capacity to about 14 billion cubic meters (bcm) per year from the current 12 bcm.

“We are working to make an investment decision early next year,” Abu said.

“We are aiming to be … 21 billion cubic meters per year in this decade,” he added.

NewMed earned $123 million net in July-September, compared to a loss of $50 million a year earlier. Net natural gas royalty revenue increased 28% to $265 million in the quarter.

Production from Leviathan, in which NewMed has a 45.3% stake, increased to 3.0 billion m3 during the period, from 2.8 billion m3 a year ago, of which 1.2 billion m3 supplied to Israel, 1.1 billion m3 to Egypt and 0.7 billion m3 to Jordan.

In the first nine months of the year, 8.5 billion m3 of natural gas was produced from Leviathan, NewMed said.

The company raised its sales estimate for 2022 to 11.2 billion m3 from 10.65 billion m3 and also said it would pay a dividend of $50 million, the same amount as the previous two quarters.

“In 2023, we will significantly accelerate Leviathan’s expansion and entry into new markets, while strengthening collaboration with our customers in Israel, Egypt and Jordan,” Abu said.

The company said talks were continuing for its merger with Britain’s Capricorn Energy Plc (CNE.L) and the deal was expected to close in the first quarter of 2023. In recent weeks, a number of shareholders of Capricorn have spoken out against the deal.

But Abu downplayed the opposition and expected shareholders of both companies to approve the merger. He projected significant growth potential for the combined entity.

“We view the transaction as positive potential for NewMed, allowing the company to finally list its shares on the London Stock Exchange (LSE) and access that exchange’s wider pool of capital,” said analyst Tavy Rosner. at Barclays. “It could also leverage Capricorn’s global experience and track record as an upstream explorer and operator.”

Reporting by Steven Scheer Additional reporting by Shadia Nasralla in London Editing by Kirsten Donovan and Mark Potter

Our standards: The Thomson Reuters Trust Principles.

. newmed energy from israel leans on expansion floating LNG

. Israels NewMed Energy floating LNG expansion

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