REG - Energean PLC - New GSPA Signed

EnergeanAnnouncement

14/04/2025 07:00

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RNS Number : 8589E  Energean PLC  14 April 2025

 

Energean plc

("Energean" or the "Company")

 

New GSPA Signed

London, 14 April 2025 - Energean plc (LSE: ENOG, TASE: אנאג) is pleased to
announce that Energean Israel Limited ("Energean Israel") has signed a new Gas
Sale and Purchase Agreement ("GSPA") with Kesem Energy Ltd ("Kesem").

The contract is for the supply of gas to Kesem's new power plant, which is
estimated to be operational before the end of the current decade 1  (#_ftn1) .
Contracted supply is ~1 bcm/yr from around the middle of the 2030s until the
end of the contract period. Prior to this, Energean Israel will supply limited
quantities of gas intermittently. The contract 2  (#_ftn2) represents over $2
billion in revenues and ~12.5 bcm in contracted supply over the ~17 year
period.

The contract contains provisions regarding floor pricing, take or pay and
price indexation (not Brent-price linked). The GSPA has been signed at levels
that are in line with the other large, long-term contracts within Energean's
portfolio.

 

Mathios Rigas, Chief Executive Officer of Energean,
commented:

"We are pleased to announce the signing of another new contract, this time
with Kesem, whose new planned power plant demonstrates the robust and growing
long-term demand for natural gas in Israel. Energean has been a major
underwriter of both energy security and transition in Israel and the broader
region. We are delighted to continue to meet the needs of Israeli clients and
society.

"This contract also reflects our long-stated commitment to securing stable and
reliable long-term cash flows. We have now secured around $20 billion in
contracted revenues over the next two decades.

"Our strategy emphasises stability and resilience, evidenced by the fact that
over 75% of our Group production contains floor pricing. This approach
safeguards our operations and investments against global financial and
commodity price volatility. It is and remains one of the core tenets of our
strategy and investment thesis."

Enquiries

 

 For capital markets: ir@energean.com (mailto:ir@energean.com)
 Kyrah McKenzie, Investor Relations Manager                         Tel: +44 (0) 7921 210 862

 For media: pblewer@energean.com (mailto:pblewer@energean.com)
 Paddy Blewer, Corporate Communications Director & Head of CSR      Tel: +44 (0) 7765 250 857

Forward looking statements

This announcement contains statements that are, or are deemed to be,
forward-looking statements. In some instances, forward-looking statements can
be identified by the use of terms such as "projects", "forecasts", "on track",
"anticipates", "expects", "believes", "intends", "may", "will", or "should"
or, in each case, their negative or other variations or comparable
terminology. Forward-looking statements are subject to a number of known and
unknown risks and uncertainties that may cause actual results and events to
differ materially from those expressed in or implied by such forward-looking
statements, including, but not limited to: general economic and business
conditions; demand for the Company's products and services; competitive
factors in the industries in which the Company operates; exchange rate
fluctuations; legislative, fiscal and regulatory developments; political
risks; terrorism, acts of war and pandemics; changes in law and legal
interpretations; and the impact of technological change. Forward-looking
statements speak only as of the date of such statements and, except as
required by applicable law, the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise. The information contained in this
announcement is subject to change without notice.

 

 1  (#_ftnref1) Timing subject to the completion of construction and
operational start-up of Kesem's new power plant.

 2  (#_ftnref2) Subject to Kesem achieving financial close for the plant by
January 2026.

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