The partners in the Tamar natural gas prospect are considering exporting gas to China. Hebrew daily "Ma'ariv" reports that Delek Group Ltd. (TASE: DLEKG) controlling shareholder Yitzhak Tshuva returned last Friday from a business trip to China, where he visited Beijing and Harbin, the capital of Heilongjiang Province.
Among others, Tshuva met Heilongjiang Governor Li Zhanshu. Heilongjiang is China's northernmost province, with 80 million residents and a quarter of China's heavy industry, including the country's aerospace industry. "Ma'ariv" says that a delegation from Tamar's partners will shortly go to China to pursue talks.
Delek Group subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (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 Energy in Israel (1988) Ltd. (TASE:DRAL) unit Dor Alon Energy Exploration Ltd. with 4%.
Market sources have long believed that the Tamar partners would export natural gas from the prospect after signing large contracts with Israeli customers and meeting all of Israel's energy needs. The Tamar partners have already signed one large gas supply contract with Israel Electric Corporation (IEC) (TASE: ELEC.B22), and market sources believe that another large contract with Israel Corporation (TASE: ILCO) is next. Contracts with large and mid-sized manufacturers will follow.
Since Tamar's gas reserves are large enough to meet Israel's energy needs for at least the next 15-20 years, Tamar's partners are seeking to export gas as well. Conventional wisdom says that the likeliest export markets are countries close to Israel, such as Cyprus and southern Europe, since their proximity eases delivery logistics.
Published by Globes [online], Israel business news - www.globes-online.com - on January 27, 2010
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