Energean to invest $1.2 billion to develop Katlan gas project off Israel coast
Initial gas production from group of formations located near the existing Karish and Tanin projects planned for first half of 2027
Energean announced on Tuesday that it will invest about $1.2 billion to develop the Katlan project off the Israel shore, with gas output expected to commence in the first half of 2027.
Katlan, discovered by global oil and gas producer Energean in 2022, is a group of formations located near two existing projects off Israel’s Mediterranean coast — Karish and Tanin — also owned by Energean.
Initial gas production is planned for the first half of 2027 with capital expenditure of about $1.2 billion to develop the project, upgrade and drill wells, the company said.
The field contains 68 billion cubic meters (2.4 trillion cubic feet) of proven and probable gas reserves.
Energean said production will underpin its existing gas sales agreements and target international markets.
The London-headquartered explorer aims to double its production in the coming years, primarily through the development of new prospects in Israel including the Katlan field.
Developing Katlan “will provide additional energy security and drive sustainable development, both in Israel and the broader region,” Energean CEO Mathios Rigas said in a statement.
The company said that Israel’s Energy Ministry had granted a 30-year lease for the Katlan area including a 20-year extension option.
The Energy Ministry said last year that Energean intended to develop the Katlan field and make use of the existing infrastructure, including its floating production, storage and offloading (FPSO) facility, used to extract natural gas from the Karish reservoir.
Natural gas from Israel’s Leviathan, one of the world’s largest deep-water gas discoveries, which contains an estimated 22 trillion cubic feet of gas, started to flow to the Israeli domestic market in December 2019. Currently, a maximum capacity of up to 1.2 billion cubic feet of natural gas per day, or 12 billion cubic meters per year, is piped up from the Leviathan reservoir for the supply and sale of gas to Israel, Egypt, and Jordan.
Sharon Wrobel and Times of Israel staff contributed to this report.
The Times of Israel Community.