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Drilling partners reveal infrastructure plan for gas discoveries
By Avi Bar-Eli
Price tag for extraction could reach $2.5 billion

The plan for developing the Tamar and Dalit natural gas reserves is becoming clearer. The drilling partners want the Tamar reserve off the coast of Haifa extracted first for the Israel market, while the Dalit site will be left until a later stage.

The partners also agree the gas will be extracted with underwater infrastructure rather than via a drilling rig. The system will include underwater storage tanks connected by a remotely monitored piping system, which will be used to store the gas and pipe it to shore for processing. This differs from the extraction of the Thetis Sea reserves, for instance, which employ drilling rigs.
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Although non-rig extraction offers less flexibility in consumer supply, it is relatively quick and cheap. The cost of extraction is estimated at $2.5 billion, but this figure could vary, based on other extraction methods under consideration. Knowledgeable sources say the partners will opt for three to four underwater tanks to allow extraction of 5-6 billion cubic meters of natural gas annually for local consumption.

Natural gas from Tamar will be piped through either one or two 130-km. pipes running southward. The location of the terminals, which Nobel Energy is determine in the coming weeks, represents two options. One is delivery by a direct pipeline to Ashdod, where the Thetis Sea terminal is located. Although a major overhaul to the terminal is necessary for it to receive the additional gas, the site has the advantage of being already licensed for such operations. Another alternative is to connect the piping to the Thetis Sea facility next to the Mary-B site off the coast of Ashkelon, refilling its dwindling store of natural gas and making use of existing infrastructure.

The partners have rejected the possibility of funneling the gas to a reception station on the northern coastal plain, due to statutory delays expected in licensing a new site on the waterfront.

Other suggested alternatives include funneling the gas to the port of Haifa, or to Tantura, where land and underwater piping infrastructure for natural gas connect.
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