Energean announced on Tuesday that it will invest approximately $1.2 billion to develop the Katlan gas project off Israel’s Mediterranean coast, with initial production expected to begin in the first half of 2027.
Discovered by Energean in 2022, the Katlan project comprises several formations located near the company’s existing Karish and Tanin fields. The planned investment will be used to develop the project, upgrade facilities, and drill wells.
The Katlan field holds 68 billion cubic meters (2.4 trillion cubic feet) of proven and probable gas reserves. Energean aims to leverage this new production to support its existing gas sales agreements and target international markets.
With its headquarters in London, Energean plans to double its production in the coming years, focusing on new prospects in Israel, including Katlan.
Energean CEO Mathios Rigas emphasized that the Katlan development will enhance energy security and foster sustainable growth both in Israel and the surrounding region. The Israeli Energy Ministry has granted a 30-year lease for the Katlan area, with an option for a 20-year extension.
The Energy Ministry also noted that Energean plans to utilize existing infrastructure, including its floating production, storage, and offloading (FPSO) facility, currently used for the Karish reservoir.
The Leviathan gas field, one of the world’s largest deep-water gas discoveries with an estimated 22 trillion cubic feet of gas, began supplying the Israeli domestic market in December 2019. Currently, up to 1.2 billion cubic feet of natural gas per day, or 12 billion cubic meters annually, is piped from Leviathan to Israel, Egypt, and Jordan.
