The IEC's largest ever purchase deal could be worth $9.5 billion.
The Tamar gas field partners are demanding a 50% hike in the price of natural gas as part of a huge deal with Israel Electric Corporation (IEC) (TASE: ELEC.B22). Sources involved in the negotiations say that the Tamar partners have pushed up the price of gas from $4.5 per MMBtu to $6.5 per MMBtu. The largest ever such deal in the history of the country is believed to be worth about $9.5 billion.
In response, the Tamar partners said that these were "baseless numbers." Sources at the Tamar partners said, "The final price of the gas may be less than the IEC is paying for gas flowing from the Yam Tethys field."
Analysts estimate that IEC is paying $5.60 per MMBtu under an agreement it signed with Yam Tethys in 2009.
Earlier this week "Globes" revealed that the IEC wants to double the amount of gas purchased from the Tamar partners, from 2.7 billion cubic meters to 5 billion cubic meters.
The Tamar field is owned by Noble Energy Inc. (NYSE: NBL), Delek Group Ltd. (TASE: DLEKG), Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L), and Alon Natural Gas Exploration Ltd. (TASE: ALGS),