Energean Seals $1.4 Billion Gas Deal for Sorek Power Station

Energean, a company traded on the Tel Aviv and London stock exchanges, has signed a significant long-term agreement to supply natural gas to Israel's Sorek power station. The deal, valued at approximately $1.4 billion, spans 15 years and will involve the delivery of up to 7.7 billion cubic meters (BCM) of gas. Supply is slated to commence with the power station's operation in late 2029.

This new contract complements Energean's existing agreements with two other major Israeli electricity generation projects, Kesem and Dalia 2. These combined contracts bring Energean's future contractual revenue from these projects to over $5 billion.

The company reported a strong first half of 2026, with net profit after tax soaring by 45% and cash flow increasing by 35% compared to the same period last year. This financial growth is attributed to the full resumption of operations at the Karish offshore platform in August, which saw production exceed 180,000 barrels of oil equivalent per day.

Energean is also advancing the development of the Katlan gas field, with over 60% of its $1.2 billion investment already deployed. First gas from Katlan is anticipated in the first half of 2027. The company is also progressing on the Irena project in Croatia, the Tzena export pipeline in Israel, and preparing for an exploration drill in Greece with ExxonMobil.

In July, Energean completed the upgrade of a liquids processing unit on its floating production facility off the coast of Hadera. This expansion increased its liquids processing capacity from 18,000 to 31,000 barrels per day, positioning Energean as responsible for approximately 85% of Israel's offshore oil liquids production.