Chevron and Partners to Bolster Natural Gas Output from Tamar Offshore Field

SEATTLE (Oil Monster): U.S. energy giant Chevron along with partners, announced investment of around $24 million to boost its natural gas production capacity from the Tamar offshore field in Israel.

The investment is part of plans to expand natural gas production capacity to about 1.6 billion cubic feet (BCF) a day from the Tamar field in a phased manner. This will help Israel meet its energy needs and bolster natural gas exports to Egypt.

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The first phase of the project comprises of laying a 150-kilometer pipeline from the Tamar field to the platform. The project will boost daily supply of production from 1.1 BCF to 1.2 BCF of natural gas. The two phases will see a combined investment of $673 million and is expected to reach completion by 2025.

Prior to the investment approval, the project partners had announced that they have reached a new gas sales agreement with Blue Ocean Energy, the Egyptian importer of natural gas. Per agreement, the partners will sell an additional 4 BCM of natural gas per year to Egypt for a period of 11 years, with supplies expected to commence in July next year.

Chevron operates and holds 25% stake in Tamar gas field. The other partners of the project are Isramco, Mubadala Energy, Tamar Investment 2, Tamar Petroleum, Dor Gas and Everest.

The development is expected to benefit domestic and regional natural gas markets.