The partners in the Tamar natural gas prospect have signed a deal to sell gas worth around $500 million.
They will sell the gas to Dimona Silica Industries (DSI), which will use the gas to power its factory as well as a private power plant that will be set up near its facility.
Delek Group subsidiaries Avner Oil and Gas LP (TASE: AVNR.L)and Delek Drilling Limited Partnership (TASE: DEDR.L) each own 15.625% of the Tamar gas prospect, alongside Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L)with 28.75%, Noble Energy Inc. (NYSE: NBL) with 36%, and Dor Alon (TASE: DRAL) unit Dor Alon Energy Exploration Ltd. with 4%.
The deal is for about 2.8 billion cubic meters over 17 years. DSI has the option to buy more gas for other projects.
After the recently signed large gas supply contract signed with the Israel Electric Corporation (IEC), it was estimated by "Globes"' that the next deals signed by the Tamar consortium will be with mid-sized facilities in Israel, and to Israel Corp. (TASE: ILCO) companies such as Oil Refineries Ltd. (TASE:ORL).
Market sources expect that some of the gas will also be exported, primarily to southern European countries such as Cyprus. However, exports generally be considered at a later stage, after signing agreements with local facilities and after closing the financing for the site.
Published by Globes [online], Israel business news - www.globes-online.com - on February 21, 2010
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