Energean looking to increase capacity in Israel

Gas producer Energean is looking at options to increase the capacity of its floating production storage and offloading (FPSO) vessel off Israel to 12 billion cubic meters (bcm) a year, CEO Mathios Rigas told Reuters on Thursday.

The FPSO is on track by next year to deliver 8 bcm into the Israeli gas market after the startup of Energean’s Karish offshore field last October, which will reach 6.5 bcm capacity by year-end.

Rigas added Energean would focus on increasing production, which is due to rise from a maximum of around 160,000 barrels of oil equivalent per day this year to 200,000 boed by the second half of next year, from its existing portfolio, rather than buying assets.

The firm is due to give an update on the development concept of the Olympus area of Israeli gas fields by mid-year, potentially unlocking 68 bcm of reserves and prospective resources.

As to future markets for its gas, Rigas said Energean would use any new infrastructure, including any potential pipelines between the Eastern Mediterranean and Europe or Cyprus or a new floating liquefied natural gas (LNG) terminal offshore Israel.

He added that currently Asia offers the best prices for LNG despite Europe’s need to replace Russian gas supplies. [Reuters]