The Tamar gas field partners - 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) - will sign a16-year gas supply contract with independent power producer Dorad Energy Ltd. tomorrow worth up to $4 billion.Tamar will begin gas deliveries to Dorad in the second half of 2013.
As a consequence of this contract, Israel Corporation (TASE: ILCO) may not receive enough gas for its companies from Tamar for a limited period because the pipeline from the production platform is too narrow to meet the demand from all the customers. The widening of the pipeline as part of the project's second stage, is due to be completed by mid-2015, but it is still subject to feasibility studies and the obtaining of permits to operate Yam Tethy's Mari B reservoir (owned by Noble Energy and Delek) as an operational reservoir.
Fortunately for Israel Corp., Tamar has sufficient available capacity at this time, because Dalia Power Energies Ltd., the other independent power producer with which the Tamar partners have a gas supply contract, will not need gas until mid-2015, when its power plant comes on line.
Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2012
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