(Reuters) -UK-based gas producer Energean said on Monday that its Israeli subsidiary has signed a gas sale and purchase contract with Kesem Energy to supply fuel for a new power plant in Israel.
Under the agreement, which represents over $2 billion in revenue, Energean Israel will supply Kesem’s new plant with about 12.5 billion cubic meters of gas over the 17-year lifespan of the contract.
Energean, which primarily operates in Israel, has been benefiting from increased gas demand in the country due to rising electricity needs and coal phase-out plans.
The company aims to double its production in the coming years, primarily by developing new prospects in Israel.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips and Varun H K)
