Energean Israel, part of the UK's Energean, has formalised an agreement with Israel Natural Gas Lines (INGL) for the transportation of up to one billion cubic metres (bcm) of gas annually through the planned Nitzana pipeline to the Egyptian border.
The 15-year agreement includes options to extend or terminate the contract early, as well as interim access to the Jordan-North pipeline capacity while the Nitzana pipeline is under construction.
The planned pipeline will run from Ramat Hovav to the Egyptian frontier in the Nitzana region.
The operational status of the Nitzana pipeline is dependent on the completion of transmission agreements by all three parties, namely Energean, Leviathan, and Tamar, with a deadline of 36 months from the signing date for the pipeline to be functional.
Energean Israel is set to cover 16.4% of the construction expenses for the pipeline and compression station, amounting to around $100m, which excludes contingency amounts.
This financial obligation is expected to be met principally through a newly arranged $70m unsecured ten-year term loan from Bank Hapoalim in Israel.
An initial down payment of 40% will be made, with the remaining amount to be settled in accordance with the construction timeline, drawing on the loan and Energean Israel's liquid assets.
Energean CEO Mathios Rigas said: “Energean is well positioned as a key regional player, and we remain focused on advancing all export opportunities from our Israeli assets, in the best interests of our shareholders, the Israeli gas market, and the region.
“This approach is complemented by the stated policy of the Israeli Ministry of Energy, which supports expanding and optimising gas exports as a means to strengthen the market. Although the bedrock of our cashflows is from our long-term domestic contracts, the signing of this agreement marks an important milestone to drive growth in our annual gas sales.”
Furthermore, Energean said that it has signed a non-binding term sheet with an East Mediterranean client for the sale of its natural gas, subject to the issuance of an export permit by the Petroleum Commissioner.
In July 2025, Energean and INA – INDUSTRIJA NAFTE announced a final investment decision to advance the development of the Irena gas field off the coast of Croatia.
