Tamar partners in talks to sell gas to Palestinians

Delek and Noble Energy are in talks with the Palestinian Authority to sell one billion cubic meters of natural gas to three power stations due to be built.

The Tamar partners are in talks with the Palestinian Authority to sell one billion cubic meters of natural gas to three power stations due to be built Jenin, Ramallah, and Jericho in the West Bank. The Prime Minister's Office welcomes the talks.

Tamar partner Delek Drilling LP (TASE: DEDR.L) disclosed the negotiations in its prospectus on Thursday. "We are examining the option of exporting natural gas to the Palestinian Authority and neighboring countries," is said. The latter reference is to Jordan and Egypt.

"Globes" found that the Tamar partners and the Palestinians have held several meetings in neutral locations in Amman, Jordan, Cyprus, and Greece. Representatives of Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL) met with Palestinian Authority officials and executives of the private companies involved in the construction of the power stations.

Supplying gas to the Palestinian Authority would enable Israel to end its commitment to supply electricity to Palestinian customers in the West Bank, which will greatly increase Israel Electric Corporation's (IEC) (TASE: ELEC.B22) reserves. The Palestinian Authority is IEC's largest customer, consuming 7% of its output.

Noble Energy owns 36% of Tamar, Delek subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling each own 15.625%, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) owns 28.7%, and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Alon Natural Gas Exploration Ltd. (TASE: ALGS) owns 4%.

Published by Globes [online], Israel business news - www.globes-online.com - on July 24, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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