Energeanand the Public Gas Corporation of Greece have agreed to cooperate to further support the EastMed Pipeline Project. Ahead of the Intergovernmental Agreement on the EastMed Pipeline, to be signed later today by the Ministers of Cyprus, Greece and Israel responsible for Energy, Energean and DEPA have signed a Letter of Intent ("LoI") for the potential sale and purchase of 2 BCM natural gas per annum from Energean's gas fields offshore Israel, where Energean is investing $1.7bn for the development of the Karish and Tanin fields through the FPSO "Energean Power". Additional details, including terms, delivery points, gas composition, the shipper of the EastMed pipeline etc. will also be agreed and detailed in the GSPA. Konstantinos Xifaras, CEO of DEPA, stated: "With the agreement we have signed today – the first agreement for the commercial use of the EastMed pipeline – we are taking a decisive step for the project's commercial viability and its realization. With the present LoI, DEPA is pledging to buy 2 BCM of gas, which corresponds to 20% of the EastMed's initial capacity. Thus, a major producer of East Mediterranean gas (Energean) and a key distributor of gas in South East Europe (DEPA) are joining forces to ensure the success of the pipeline." While Mathios Rigas, CEO of Energean, said: "The agreement with DEPA is an important development in the context of the EastMed pipeline project, which now has not only the support of Governments and the EU but is also attracting commercial interest from buyers and sellers of gas in the region. The EastMed pipeline provides Energean with another monetization route for its strategy to fully utilize the Energean Power FPSO that has an 8 BCM/y capacity and further allows us to continue the exploration and development of our 9 licenses offshore Israel."
