Chevron to launch two-phase expansion of Tamar gas field

Phase One of the expansion will include the construction of another pipeline, expected to be finished in 2025.

 IN A ONCE-UNTHINKABLE development, the Mubadala Investment Corporation, a sovereign wealth fund of Abu Dhabi, invested $1 billion in the Tamar natural gas field. (photo credit: MOSHE SHAI/FLASH90)
IN A ONCE-UNTHINKABLE development, the Mubadala Investment Corporation, a sovereign wealth fund of Abu Dhabi, invested $1 billion in the Tamar natural gas field.
(photo credit: MOSHE SHAI/FLASH90)

The first phase of a two-phase capacity expansion of the Tamar natural gas reservoir is slated to take place in the new year, the company announced on Thursday.

The move comes as a result of a Final Investment Decision (FID) between Chevron Mediterranean Limited and the working interest owners of the Tamar reservoir, which include Chevron Mediterranean Limited, Isramco, Mubadala Energy, Tamar Petroleum, Dor Gas and Everest.

“Reaching an FID for Phase One of Tamar’s expansion reflects Chevron’s ongoing commitment to supporting the State of Israel’s strategy to develop its energy resources for the benefit of domestic and regional natural gas markets,” said Jeff Ewing, managing director of Chevron’s Eastern Mediterranean Business Unit. “When completed, this project will enable us to meet Israel’s growing domestic demand, increase our natural gas delivery to neighboring countries and supply the world whose need for affordable, reliable, ever-cleaner energy continues to grow.”

Phase One of the expansion will include a third 150 km pipeline from the Tamar field to the offshore Tamar platform, which will be adapted to support deliverability of up to 1.2 bcf/d of natural gas. According to Chevron, the process is expected to take until 2025.

Phase Two of the project hinges upon an expected gas sales agreement with Tamar’s existing customer in Egypt and transportation agreements via enhanced gas transportation routes between Israel and Egypt. The decision will also require customary regulatory approvals, including the issuance of an export permit by Israel’s Energy Ministry. Completion of this phase is scheduled for the second half of 2025.

 Jeff Ewing, Managing Director of Chevron's Eastern Mediterranean Business Unit (credit: CHEVRON MEDITERRANEAN LIMITED) Jeff Ewing, Managing Director of Chevron's Eastern Mediterranean Business Unit (credit: CHEVRON MEDITERRANEAN LIMITED)

Chevron expects to produce around 1.6 bcf/d of natural gas from the Tamar field after the expansion project has been completed.

A great time for fans of offshore gas

Earlier this year, oil company Energean PLC announced several new developments in its gas projects off the shore of Israel, including the discovery of a new commercial natural gas discovery of 13 billion cubic meters. As well, it confirmed the presence of an additional 3.75 bcm at its Athena site, confirming the company’s suspicions that the “Olympus area” between the Karish and Tanin gas fields are full of potential oil and profit.

“We are evaluating a number of potential commercialization options for the Olympus area that leverage both new and our existing, unique Med-based infrastructure, and we expect to commit to a development concept in 1H 2023,” said Mathios Rigas, CEO of Energean. “I am pleased that our drilling program, which has now delivered five successful wells from five, continues to deliver value, ensuring the security of supply and energy competition across the region.”