"The natural gas discovery at the Tamar well has caused euphoria in the electricity market. As a citizen, I am pleased about this national discovery, but as the CEO of IEC, I believe that we must not go over the top," Israel Electric Corporation (IEC) (TASE: ELEC.B22) CEO Amos Lasker told the annual energy conference of the Israeli Institute of Energy and Environment.
Lasker noted that IEC has still not secured natural gas supplies for 2013-15. He stressed that the company intended to hold parallel negotiations with several suppliers, in order to lower costs and diversify energy sources. "We want as many sources as possible so that we can maneuver between them. We intend to attempt to utilize every option - the Tamar prospect, BG Group, and liquid natural gas - in parallel so that can be certain that we'll have enough gas," he added.
Delek Drilling LP (TASE: DEDR.L) CEO Zvi Greenfeld said, "Our goal is to complete construction of a distribution network for the Tamar well within three years. This goal is completely attainable. If we succeed, there will be no natural gas shortfall in 2013-15. We're aware that there is a shortfall, and we'll try to provide the necessary response." Delek Drilling is one of the partners in the Tamar prospect.
Ministry of National Infrastructures director general Hezi Kugler backed Lasker's comments, saying that, despite the success of the Tamar well, negotiations for the purchase of liquid natural gas must not be halted. "The Tamar discovery will definitely enable us to meet the target of using natural gas for 40% of electricity production, but we mustn’t get carried away. Tamar should be a safety net for the supply of natural gas for the economy," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2009
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