Sources inform ''Globes'' that the Natural Gas Authority objects to a government commitment to purchase natural gas from the Tamar and Dalit prospects as part of an effort to develop them. The opinion was given to Ministry of National Infrastructures director general Shaul Tzemach who is formulating the ministry's official position on possible state aid for development of the gas fields.
The Natural Gas Authority said that direct government intervention in natural gas purchases from the Tamar and Dalit prospects, or the offering of government guarantees for the development of the fields, was liable to result in higher natural gas prices to potential consumers, such as Israel Electric Corporation (IEC) (TASE: ELEC.B22) and private power producers.
A senior government source close to the issue said recently, "Yam Tethys has a $1 billion contract with IEC. A contract of this size reduces, at least in the short term, the need for government intervention."
Tzemach said in response that the ministry was examining other alternatives for helping development of the gas fields. "The state will not directly buy natural gas from the Tamar prospect. A gas deal should stay at the level between the consumer and gas supplier," he said.
Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, and Noble Energy Inc. (NYSE: NBL) are partners in both Yam Tethys, which owns the gas field offshore from Ashkelon, and in the Tamar and Dalit gas fields offshore from Haifa and Hadera. Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and Alon Israel Oil Company Ltd. unit Dor Gas Exploration Ltd. are also partners in the Tamar and Dalit gas fields.
Published by Globes [online], Israel business news - www.globes-online.com - on August 3, 2009
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