ICL Signs 15-year, Up To $1.9 Bln Contract With Energean For Natural Gas Supply

(RTTNews) - ICL (ICL), an Israel-based specialty minerals and specialty chemicals company, announced Thursday that it has signed a binding contract with Energean Israel Limited for long-term supply of natural gas.

According to the contract, the Greek company will supply up to 13 BCM of natural gas to ICL at a total consideration of up to $1.9 billion over a 15 year period.

The companies had entered into a Memorandum of Understanding or MoU in August this year.

The agreement is subject to receipt of required approvals, the regulation of the supply of natural gas and the approval by the Company's shareholders.

Energean holds licenses to develop the Karish and Tanin natural gas fields in Israel's territorial waters. The natural gas will be supplied to ICL by Energean starting from the second half of 2020 at the earliest, dependent on the completion of development and commencement of production of natural gas in the fields, and will be used to operate ICL's plants and power stations in Israel.

ICL's Acting CEO, Asher Grinbaum, said, "The signing of the contract is an important milestone in guaranteeing the continuous supply of natural gas to our Israeli plants at an attractive price in comparison with our existing contracts. The contract is expected to cover all our energy needs, including the operation of our new 240 MW power station in Sdom, which is expected to become operative during the first quarter of 2018."