Tamar partners sign $680m gas contract with Mashav

Mashav will buy 200 billion cubic meters of gas a year over 15 years for its Nesher Cement plant and power station in Ramle.

The Tamar partners - Noble Energy Inc. (NYSE: NBL), Delek Group Ltd. (TASE: DLEKG), and Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) - today announced that they have signed a $680 million natural gas supply contact with Mashav Initiation and Development Ltd. for the company's Nesher Israel Cement Industries Ltd. plant in Ramle and for its power station there. Tamar will supply 200 billion cubic meters of natural gas a year over 15 years or until Mashav consumes the total contractual quantity set out in the agreement, whichever comes first. Deliveries will begin in the second half of 2013.

Mashav has the right, exercisable within two months of the signing of the agreement, to reduce the contracted gas deliveries by 40% if it does not expand its Ramle power station.

The agreement is a take-and-pay contract linked to the electricity tariff as set by the Public Utilities Authority (Electricity), subject to a floor price.

Published by Globes [online], Israel business news - www.globes-online.com - on February 12, 2012

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

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