Page 11 - MEOG Week 19
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MEOG PIPelInes & transPort MEOG
Iran’s gas transfer
capacity ‘has
reached’ 1bcm per day
Iran
IraN’S natural gas transfer capacity has reached one billion cubic metres per day, hav- ing increased by 150 mcm per day in the past four months, the director of dispatching at the National Iranian Gas Co. was cited as telling IrNa by Tehran’s Financial Tribune on May 9.
“The gas network has the capacity to supply one billion cubic metres of gas [on a daily basis] to households, industries and power plants.
This is up 18% compared to January when it was 800,000 [cm] per day,” Mehdi Jamshidi Dana reportedly said.
Pipe laying work to link the South Pars Gas Field onshore refineries in asalouyeh, located in
southern Bushehr province on the Persian Gulf, to the Iran Gas Trunkline (IGaT) was carried out over the past three years and was near comple- tion, he added. referring to Iran Gas Trunkline 9 (IGaT-9, aka Europe Gas Export Line), which originates east of asalouyeh and passes through western provinces before reaching Turkey’s bor- der, Jamshidi Dana was quoted as saying that it was the least developed pipeline of the set of pipelines in 2018 but was by now complete.
Iran continues to work on infrastructure that would mean all of its available extra natural gas via IGaT could be either exported or turned into value-added products such as electricity.
FInanCe & InVestment
Delek sheds Israeli fuel arm for $205mn
Israel
ISraEL’S Delek Group announced on May 7 it had signed a binding memorandum to divest its fuel storage and distribution arm Pi Gelilot to a third party for ILS720mn ($205mn).
The company, which is struggling to keep a handle on its debts, said the deal, still subject to regulatory and board approvals, included land on which Pi Gelilot’s fuel terminals are operated in the cities of Haifa, ashdod, Beer Sheva and Jerusalem. It did not disclose the buyer’s identity.
“The memorandum of understanding [MoU] is subject to receiving the approvals of the boards of directors of the parties and a deposit of ILS100mn by the buyer in escrow within one business day from receipt of approvals of the boards,”Deleksaidinaregulatoryfiling.
a detailed agreement will be put together and signed within 30 days and the remaining balance paid within a further 30 days.
Under the memorandum, Pi Gelilot will continue supplying Delek Israel the services it supplies at the ashdod, Beer Sheva and Haifa
terminals for up to 10 years under the same terms as now, with another five-year option depending on the revenues the terminals generate. The fuel distributor will likewise continue serving Delek at the Jerusalem terminal for two years.
Delek posted a widened loss for the fourth quarter on May 3, and auditors placed a “going concern” warning on the company. Bondholders have threatened to make Delek repay the ILS6bn it owes them if it does not immediately inject ILS400mn into its business.
Delek is also a major upstream player, devel- oping several large gas fields in the east Medi- terranean’s Levant Basin. It also expanded in the North Sea last year through the $2bn takeover of Chevron’s operations there, via its Ithaca Energy subsidiary. That deal considerably increased its debt burden. In a statement this week, Delek said it expected “to reach an agreed plan concerning an update of the financial covenants and credit terms, strengthening of the collateral and rein- forcing its capital.”
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