Landau orders reduction in pumping from Yam Tethys

The directive will extend Yam Tethys natural gas reservoir for two years, until the Tamar reservoir comes on line.

Minister of National Infrastructures Uzi Landau has ordered a reduction in the pumping of natural gas from Yam Tethys in order to extend its reservoir for two years, until the Tamar reservoir comes on line. He has capped Israel Electric Corporation's (IEC) (TASE: ELEC.B22) purchase of gas from Yam Tethys at 2.5 billion cubic meters a year over the next two years.

In high demand months, Landau capped IEC's gas procurements at 350,000 cubic meters or one billion cubic meters over three consecutive months.

Landau coordinated his directive with the Ministry of Environmental Protection, as IEC will have to use more expensive and polluting diesel and fuel oil to make up for the shortfall in natural gas for the generation of electricity.

Noble Energy Inc. (NYSE: NBL) and Delek Group Ltd. (TASE: DLEKG) jointly own Yam Tethys, and they are the majority partners in Tamar, along with Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and Alon Natural Gas Exploration Ltd. (TASE: ALGS).

Yam Tethys's reserves were planned to run out in 2013, but increased pumping due to the cessation of supplies of gas from Egypt, means that the reservoir was liable to run out sooner. As a stopgap measure until Tamar comes on line, the Ministry of National Infrastructures ordered Noble Energy and Delek to develop the Noa gas field (near Yam Tethys) and to build a gas terminal buoy to handle liquefied natural gas imports.

Published by Globes [online], Israel business news - - on October 11, 2011

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

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