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Tel Aviv readies LNG tender

Israel issued a tender today for an offshore liquefied natural gas receiving terminal with a daily processing capacity of about 16 million cubic metres.

The country's finance and national infrastructure ministries said in a joint statement the successful bidder would agree to a build-operate-transfer (BOT) deal under which it will receive a licence to develop and operate the project for 20 to 30 years, after which the ownership will shift to the government.

Companies have until mid-September to bid for the project which was approved by the government in May after a Noble-led consortium hit gas with the Tamar well in the eastern Mediterranean.

Noble is sitting on more than 88 billion cubic metres of gas at Tamar. Noble has a 36% stake in the find, while Isramco Negev has 28.75% and Avner Oil Exploration and Delek Drilling 15.625%. Dor Gas Exploration owns 4%.

Noble has not yet made its development plans for Tamar public, but analysts told reuters that the proposed LNG terminal is ideally placed to take some of Tamar's gas.

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