Gas producer Energean wants to copy the East Med model for West Africa

Energean, a gas producer, is interested in buying discovered gas fields that are not on the radar of larger rivals in West Africa, CEO Mathios Riga said Thursday. This would be a replica of its business model for the Eastern Mediterranean.

Energean developed gas fields near the coast of Israel over the past few years. These fields are primarily used to supply the domestic market through long-term contracts worth $20 billion in the next 20 years.

Everyone is focused on the FLNG (floating, liquefied gas) mega-projects that will export natural gas. As we've seen in Israel, this isn't the only way to get gas. Rigas said that there are some domestic markets which can be solid.

Energean reported in its trading update of Thursday that it had $265 millions in cash and $946 million of liquidity at the end March.

Rigas said that the company is still searching the market for assets suitable to deep-water operations.

He said that if we had a specific project in mind, he would go to the market to raise funds. Raising additional equity, he added, was unlikely.

Rigas reported that Energean also plans to book 1 billion cubic meters on the proposed Nitzana pipeline, which will run from Israel to Egypt.

(source: Reuters)