The partners plan to invest approximately $673m for natural gas production expansion from the Tamar offshore field to address the surging domestic and global demand and increase exports to Egypt.
The first phase of the expansion project aims to increase the field’s natural gas production to nearly 1.6 billion cubic feet (bcf).
It will also see the installation of a 150km pipeline from the Tamar field to the platform. The pipeline is expected to have a supply capacity of up to 1.2bcf per day of natural gas.
Phase 1 of the expansion project is planned for completion in early 2025.
Chevron Eastern Mediterranean managing director Jeff Ewing said: “Reaching a 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.”
The second phase of the Tamar field expansion project will be secured by a new gas sales deal with an existing customer in Egypt, reported The Jerusalem Post.
Completion of the second phase is anticipated in the second half of 2025.
Ewing added: “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.”