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Tamar partners sign two gas contracts for $1.2b

10 Jan, 2012 9:59
שלח תגובה במיילKoby Yeshayahou

Delek, Isramco, Noble Energy, and Alon Gas signed to contracts with private power companies owned by Edeltech and Turkey's Zorlu.

The Tamar partners have signed their second natural gas supply contract in as many days. The partners - Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L), Noble Energy Inc. (NYSE: NBL), Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L), and Alon Natural Gas Exploration Ltd. (TASE: ALGS) - signed two contracts worth $1.2 billion altogether with private power companies Ramat Energy Negev Ltd. and Ashdod Energy Ltd. Deliveries are scheduled to begin in 2014.

The contract with Ramat Energy Negev is for the supply 220 million cubic meters of gas a year for 16 years, from the start of commercial operations of the company's power station, which will supply electricity to Ramat Hovav. Edeltech Ltd. owns 58% of the company and Turkeys' Zorlu Enerji Elektrik Ureti AS owns 42%.

The contract with Ashdod Energy is for the supply of 110 million cubic meters of gas a year for 16 years, from the start of commercial operations of the company's power station, which will supply electricity to Makhteshim Agan Industries' Agan Chemicals plant in the city. Edeltech and Zorlu also own the company in the same stakes as in Ramat Energy Negev.

Edeltech had previously signed a gas supply contract with Egypt's East Mediterranean Gas Company (EMG) in 2009, with deliveries due to begin in June 2012. Edeltech has apparently decided not to rely on Egyptian gas, which is currently not flowing due to attacks on pipelines in Sinai, and signed a deal with the Tamar partners.

Yesterday, the Tamar partners signed a $5 billion 17-year contract to supply 1.38 billion cubic meters of gas a year to private power company Dalia Power Energies Ltd. Industry sources believe that the partners will soon sign more gas delivery contracts with Oil Refineries Ltd. (TASE:ORL) in Haifa and Paz Oil Company's (TASE:PZOL) refinery in Ashdod, as well as IDB Holding Corp. Ltd. (TASE:IDBH) companies Hadera Paper Ltd. (AMEX: AIP; TASE: AIP) and Nesher Cement Enterprises Ltd. The Tamar partners are also due to sign a $20 billion contract with Israel Electric Corporation (IEC) (TASE: ELEC.B22).

Delek Group's share price rose 1.5% in early trading on the TASE today to NIS 775, giving a market cap of NIS 8.8 billion, Avner rose 0.5% to NIS 2.61, giving a market cap of NIS 8.7 billion, Delek Drilling rose 2.4% to NIS 15.20, giving a market cap of NIS 8.1 billion, Isramco rose 0.8% to NIS 0.50, giving a market cap of NIS 5.9 billion, and Alon Gas was unchanged at NIS 36.29, giving a market cap of NIS 506 illion.

Published by Globes [online], Israel business news - www.globes-online.com - on January 10, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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