Nochi Dankner and Joseph (Yossi) Maiman are extending their partnerships in the energy business. IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary American Israeli Paper Mills Ltd. (AMEX: AIP; TASE: AIP) will purchase natural gas from Egypt's Eastern Mediterranean Gas Company Ltd., in which Maiman is a partner.
Under the contract American Israel Paper Mills will purchase $10-50 million worth of gas over 15 years, for a total of $150-750 million. The company recently won approval to build a natural gas-fired power station with a 230 megawatt capacity, near its factories.
In 2005, American Israel Paper Mills signed an agreement to purchase natural gas from Delek Group Ltd. (TASE: DLEKG) subsidiary Yam Thetis, which should meet the company's requirements through 2011. The latest agreement with EMG is designed to guarantee gas supplies through 2022.
The agreement is EMG's fifth natural gas sale, after it undertook to supply four billion cubic meters a year to Israel Electric Corporation, Dorad Energy, Nesher Israel Cement Enterprises Ltd., and Eshkolot Energy Ltd.
Maiman said, "I am pleased that the Israeli energy market has confidence in our commitment to deliver a timely supply of Egyptian gas at a cheaper price than any alternative, and in sufficient quantities to meet any size demand in the coming years."
American Israel Paper Mills CEO Avi Brener added, "The agreement to purchase gas from EMG is a further step in the conversion of our energy producing systems to natural gas. The conversion will generate a significant saving in fuel costs, and it will help improve the quality of the air."
Published by Globes [online], Israel business news - www.globes.co.il - on May 14, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007