Israel Electric Corporation (IEC) (TASE: ELEC.B22) may seek to reopen its gas supply contract with the Tamar gas field partners. On Thursday, IEC's board of directors discussed amending the deal, barely two weeks after gas flow from Tamar began.
IEC's board discussed foregoing the laying of a second pipeline from the Tamar field to the coast, in exchange for lowering the price it pays Tamar's partners for the gas. IEC's board has not made any decision on the matter.
On Thursday, IEC announced that it had decided to exercise its option to increase gas purchases from Tamar from 3.5 billion cubic meters (BCM) to 5 BCM, which will enable the utility to its hourly capacity by 50% and reduce the use of more expensive and polluting fuels.
Noble Energy Inc. (NYSE: NBL) owns 36% of Tamar, Delek Group Ltd. (TASE: DLEKG) subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 15.625%, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) owns 28.7%, and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Alon Natural Gas Exploration Ltd. (TASE: ALGS) owns 4%.
Published by Globes [online], Israel business news - www.globes-online.com - on April 14, 2013
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