REG - Energean PLC - Nitzana Transmission Agreement Signed

EnergeanAnnouncement

24/10/2025 07:00

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RNS Number : 6567E  Energean PLC  24 October 2025

 

Energean plc

("Energean" or the "Company")

 

Nitzana transmission agreement signed

London, 24 October 2025 - Energean plc (LSE: ENOG, TASE: אנאג) is pleased
to announce, following the update provided in its H1 2025 results on 11
September 2025, that Energean Israel Limited ("Energean Israel") has signed a
transmission agreement with Israel Natural Gas Lines Ltd. ("INGL") for
capacity in the Nitzana pipeline, in line with Energean's strategic focus on
long-term value creation. The Nitzana pipeline is a new onshore pipeline that
will be built from Ramat Hovav to the border with Egypt in the Nitzana area.

The agreed terms in the transmission agreement are for the supply of up to 1
bcm/yr for a 15-year period, with provisions for extensions and early
termination. The terms also include rights, during the construction phase, to
access available capacity in the Jordan-North pipeline. Nitzana is expected to
be operational no later than 36 months after all three parties 1  (#_ftn1)
sign transmission agreements covering the full capacity of the project.

Energean Israel's 16.4% share of the construction costs for the pipeline and
compression station is expected to be approximately $100 million 2  (#_ftn2) ,
and will primarily be funded via a new unsecured $70 million 10-year term loan
facility ("Unsecured Term Loan") provided by Bank Hapoalim. Following an
initial 40% downpayment, the remaining cost balance will be paid according to
construction milestones via drawdown under the Unsecured Term Loan and cash on
hand.

Energean has signed a non-binding term sheet with an East Mediterranean client
for the offtake of its gas 3  (#_ftn3) .

Mathios Rigas, Chief Executive Officer of Energean,
commented:

"Regional gas connectivity and long-term energy security in the East
Mediterranean is of critical importance, which is why I am pleased today to
announce the signing of the Nitzana transmission agreement. Energean is well
positioned as a key regional player, and we remain focused on advancing all
export opportunities from our Israeli assets, in the best interests of our
shareholders, the Israeli gas market, and the region. This approach is
complemented by the stated policy of the Israeli Ministry of Energy, which
supports expanding and optimising gas exports as a means to strengthen the
market. Although the bedrock of our cashflows is from our long-term domestic
contracts, the signing of this agreement marks an important milestone to drive
growth in our annual gas sales."

Enquiries

 

 For capital markets:
 Kyrah McKenzie, Investor Relations Manager                                                         Tel: +44 (0) 7921 210 862
 ir@energean.com (mailto:ir@energean.com)
 For media:
 Eliana Fishler, Group Head of Communications & Public Affairs                                      Tel: +972 (0) 54 434 2040
 efishler@energean.com (mailto:efishler@energean.com)
 Ben Brewerton, FTI Consulting                                                                      Tel: +44 (0) 2037 271 065
 energean@fticonsulting.com (mailto:energean@fticonsulting.com)

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) Energean, Leviathan and Tamar.

 2  (#_ftnref2) Excludes contingency amounts, which may add up to an
additional 12%, as per the transmission agreement.

 3  (#_ftnref3) Subject to the issuance of an export permit by the Petroleum
Commissioner.

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