Gulf Oil and Gas accountACCOUNT

Israel Electric to Buy $8 bln of Natural Gas

Source: Reuters 12/18/2011, Location: Middle East

Israel's state-owned electric utility has agreed to buy natural gas worth $8 billion from the partners developing the Tamar site off Israel's Mediterranean coast. Israel Electric Corp (IEC) said in a statement to the Tel Aviv Stock Exchange the deal is for an estimated 3 billion cubic meters of gas a year for 15 years starting in mid-2013. To ensure price stability, the price of the gas will not be linked to volatile global prices, IEC said. It noted that the purchase price would enable financing of the Tamar field.

The deal, which still needs approval from partners in Tamar as well as Israel's government and regulators, comes as IEC has been facing fuel shortages due to problems with gas supply from Egypt. The pipeline from Egypt to Israel has been closed a number of times this year due to sabotage from militants opposed to the sale of gas to Israel. A group led by Noble Energy is developing the Tamar prospect, which contains an estimated 8.4 trillion cubic feet of gas. Natural gas from Tamar is expected to arrive in Israel in 2013 and supply Israel with gas needs for more than 15 years. A nearby site, Leviathan, is nearly twice as large and due to be online around 2017.

Noble holds 36 percent of Tamar. Isramco Negev owns 28.75 percent, Avner Oil Exploration and Delek Drilling hold 15.625 percent each and Dor Gas Exploration has a 4 percent stake. Delek Drilling and Avner are both part of the Delek Group conglomerate.

IEC said natural gas from Tamar would be about 30 percent of its fuel basket for the foreseeable future. IEC also seeks clauses in the contract that would allow for a reduction in the price should the Tamar partners sign subsequent deals at lower prices and if Israel starts supervising natural gas prices. The partners have not yet agreed to these terms. But Delek said in a separate statement the partners would be holding talks with IEC to reach a final deal.

Investment News in Israel >>

Oman >>  5/15/2019 - KBR, Inc. (KBR) has been awarded a Front End Engineering Design (FEED) contract by Oman LNG L.L.C for the debottlenecking of their facility at Sur in ...
United Arab Emirates >>  5/10/2019 - McDermott International has been awarded a sizeable* contract by ADNOC to provide FEED services on a design-competition basis for phase one of the Umm...

Iraq >>  5/9/2019 - Iraq is planning a $53 billion mega project with global energy giants ExxonMobil and PetroChina to use seawater from the Persian Gulf to boost oil pro...
Qatar >>  5/9/2019 - Northern Offshore announces firm Letter of Awards for two (2) long-term contracts for its premium, heavy-duty jack-up drilling units from Qatar Petrol...

Saudi Arabia >>  5/3/2019 - KBR, Inc. (KBR) has received a three year extension to its existing General Maintenance Services (GMS) contract for the 440,000 bpd refinery at SATORP...
United Arab Emirates >>  5/1/2019 - McDermott International, Inc. (MDR) announced it has been awarded a sizeable* contract by ADNOC Refining to provide front-end engineering design (FEED...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Israel Oil & Gas 1 >>  2 | 3 |

More News

Related Links

AE BH IL IQ JO KW LB OM QA SA SY YE
Gulf Oil and Gas
Copyright Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.