Investment: News for Oil & Gas and Hydrocarbon Industries  Membership Services »
Gulf Oil and Gas grow your business
Home News Events Projects Tenders Unconventionals Community | My Account Gulfoilandgas rss feed Follow us on Facebook  Jobs 
Products and vendors Services and providers Oil & Gas Software and publications

Israel Electric to Buy $8 bln of Natural Gas

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

Share |

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 >>

Algeria Plans Investment to Reduce Reliance on Oil
  Algeria >>  8/30/2014 - The Algerian government plans to spend $262 billion over the next five years in a bid to revive the country’s flailing economy and move away from its ...
Algeria to Launch $262b Five-year Investment Plan
  Algeria >>  8/27/2014 - Algeria will launch a new five-year investment plan worth $262 billion to boost domestic production and move its economy away from reliance on oil and...

UAE Provide Egypt Loan to Purchase Petroleum Products
  Egypt >>  8/27/2014 - Tareq al-Mulla, executive chief of the Egyptian General Petroleum Corporation (EGPC), said the United Arab Emirates agreed to provide Egypt with a loa...
Energean Purchases New Rig & Begins $225n Investment in Greece
  Greece >>  8/27/2014 - Energean Oil & Gas, the international oil & gas exploration and production company focused on the Mediterranean and North Africa, launched a new $225 ...

Ruspetro Announces Short-Term Financing
  Russia >>  8/26/2014 - Ruspetro plc announce that Limolines Transport Limited has today extended a short-term unsecured loan of US$10 million to the Company at an annualised...
Japan Stock Movements - August 14
Japan >>  8/24/2014 - In Japan, total commercial oil stocks rose by 3.4 mb in June for the third consecutive month to stand at 162.6 mb. Despite this build, Japanese oil in...

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

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

Israel Oil & Gas 1 >>  2 |

More News

Oil & Gas Companies in Israel >>

Related Links

Countries Quick Links

Gulf Oil and Gas E-Marketplace - Promote your Business - About Us
Copyright © Universal Solutions All rights reserved. Privacy Policy. - Contact Us