Russian energy giant Gazprom and Israeli Delek signed an agreement to cooperate in Israel's Natural Gas Vehicle (NGV) market, Gazprom announced on Monday.
The companies will jointly examine the possibilities of using natural gas as a fuel for vehicles - road, rail and water transport, as well as special equipment for agricultural, material-handling and other equipment in Israel, according to the press release.
Gazprom proclaimed that the Memorandum of Understanding (MoU), which allows the establishment of a joint working group, was signed pursuant to the MoU inked on June 7, 2016 between the Ministry of Energy of the Russian Federation and the Ministry of National Infrastructure, Energy and Water Resources of the State of Israel.
“The gas industry contributes a lot to the sustainable and ecologically responsible development of the economy. And the use of natural gas as a fuel for vehicles is one of the most important parts of this contribution. Using gas as a vehicle fuel proves that transport without pollution is possible. It is not a remote possibility but a technology available today,” said Alexander Medvedev, deputy chairman of Gazprom's management board.
Israel's offshore region has several natural gas fields, which as yet have not been commercialized via pipelines or LNG facilities, such as the Leviathan field with a capacity of 620 billion cubic meters (bcm) and the Tamar field with 283 bcm in offshore Israel.
“We are thrilled to establish collaboration with an international corporation such as Gazprom. The profound acquaintance and extensive capabilities of Delek in the Israeli energy market, alongside Gazprom’s intensity in the natural gas field will contribute to further development of the Israeli natural gas market in general, and in particular for natural gas-based transportation. Natural gas-based transportation is more efficient, cheaper and reduces pollution,” according to Yossi Abu, Delek Drilling chief executive officer.
The Leviathan field, discovered in 2009, holds an estimated 613 billion cubic meters (bcm) of gas with 39.4 million barrels of condensates. The field is set to begin production in the fourth quarter of 2019.
By Muhsin Baris Tiryakioglu