Energean Seals 15-Year, $1.4 Billion Gas Deal with Israel's Sorek Power Station

Energean, an exploration and production company, has signed a 15-year agreement to supply natural gas to Israel's Sorek power station. The contract is valued at approximately $1.4 billion over its duration and involves the delivery of 7.7 billion cubic meters of gas. Initially, annual deliveries are expected to reach up to 0.5 billion cubic meters, with a planned increase to 0.6 billion cubic meters annually starting in September 2035, according to Globes.

This new agreement comes as Energean reported strong financial results for the first half of 2026. The company's net profit after taxes surged to $160 million, a 45% increase from the $110 million earned in the same period last year. Despite a decrease in revenue from production activities, which fell by 8% to $743 million from $804 million year-on-year, Energean attributed the profit growth primarily to significant reductions in tax expenses and higher oil and gas prices.

Pre-tax profit for the first six months of 2026 stood at $178 million, up from $174 million in the first half of 2025. Tax expenses dropped sharply from $64 million to $19 million, largely due to the recognition of deferred tax assets in Italy. Operating cash flow for the half-year was $476 million, compared to $555 million in the prior year, though free cash flow saw a 35% increase to $250 million.

Energean also continued its efforts to reduce its net debt, which decreased by $97 million in the second quarter. By the end of June, the company's net debt was reported at $3.23 billion.