Due to recent discoveries, natural gas is likely considered as the primary growth engine of the energy sector for the foreseeable future. The Spanish Gas Company Union Fenosa SA in Madrid was in touch with the Tamar partners to buy twenty percent of Tamar for its liquid gas export terminal in Egypt.
The Tamar field is a natural gas field in the Levantine basin of Eastern Mediterranean Sea which is located in an exclusive economic area of Israel. It was the largest discovery that Noble Energy Inc made in January 2009. They are the operator of the field and hold thirty-six percent of Tamar. The production was achieved in April 2013. As estimated, the field reserves ten trillion cubic feet of gas. Apart from Noble Energy Inc, Tamar natural gas has other partners including: Delek Group Ltd which leads Avner Oil Exploration and Delek Drilling Limited Partnership that own 15.625% each, Alon Natural Gas Exploration Ltd that holds 4% and Isramco Negev which has 28.75% in Tamar.
The Union Fenosa is a Spanish company which takes part in large field of trade but is especially dedicated to the production and distribution of electricity. The group provides 11.120 megawatts of power to more than 8 million customers. In 1912, it was founded under the name of Unión Eléctrica Madrileña. Later, it merged with Fuerza Eléctrica de Noroeste S.A. (Fenosa), an electric company, to create Unión Eléctrica Fenosa. Then, the company was purchased by Gas Natural SDG and traded as Gas Natural Fenosa in 2008.
Natural gas is one of the natural resources that is still underexploited however it is a sustainable source of energy. According to the 2010 BP Statistical Energy Survey, Egypt had 2.19 trillion cubic meters of natural gas reserves, 1.16% of the world total. Nigeria, Algeria and Egypt all together hold the bulk of Africa’s gas reserves. Natural gas demand has grown rapidly in Egypt. The Union Fenosa has contracted with Egyptian Natural Gas Holding Company (EGAS), a state-owned holding company, for supplying natural gas from its distribution grid, and will take 60% of the Liquefied natural gas (LNG) output, which is methane that has been converted to liquid form for the use of transport or storage, for providing energy in Spain and elsewhere in Europe. EGAS owns and handles stake in different gas projects and also is in charge of delivering natural gas exploration licenses in Egypt. Once an agreement is reached, the Spanish Gas Company Union Fenosa SA gets rights to exploration and the natural gas will be exported under the ENI’s liquid natural gas installation in Egypt. In return, the Tamar partners will beneficiate approximately $1.3 billion annually.