Yam Tethys and Israel Electric Corporation (IEC) (TASE: ELEC.B22) have signed an memorandum of understanding (MOU) for the sale of an additional $1 billion of natural gas over five years from Yam Tethys's gas field offshore from Ashkelon. Yam Tethys beat Egypt's East Mediterranean Gas Company (EMG) in the IEC tender on July 23.
Yam Tethys will supply IEC with five billion cubic meters of natural gas beginning in the summer of 2009. The gas is intended for IEC's new power plants and generators that are planned under its emergency plan.
Yam Tethys has already signed contracts for the delivery of 22 billion cubic meters of natural gas out of its 32-billion cubic meter reservoir. The new IEC contract nearly completes the reservoir's potential.
Yam Tethys is owned by Noble Energy Inc. (NYSE: NBL) and Delek Group Ltd. (TASE: DLEKG) through Delek Energy Systems Ltd. (TASE: DEOL) units Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L).
The Yam Tethys contract is unrelated to IEC's plans to buy natural gas from Delek and Noble Energy's Tamar and Dalit gas fields. IEC intends to hold separate negotiations for a gas supply contract from these fields for deliveries beginning in 2012. Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and Alon Israel Oil Company Ltd. unit Dorgas Exploration Ltd. are also partners in these two fields.
Delek Group's share rose 3.5% by midday today to NIS 647.90. Delek Energy's share rose 4% to NIS 643.40, Delek Drilling rose 1.3% to NIS 6.46, and Avner Oil's share rose 1.9% to NIS 1.01.
Published by Globes [online], Israel business news - www.globes-online.com - on August 6, 2009
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