Energy minister warns Tamar partners not to sign export deals

Uzi Landau: I see it fit to reiterate and make it clear that the Tamar holding is intended to supply the needs of the Israeli market.

Minister of Energy and Water Resources Uzi Landau today warned the Tamar 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) - not to sign natural gas export agreements. The warning came in response to reports on such agreements.

In his letter to the companies, Landau said, "I see it fit to reiterate and make it clear that the Tamar holding is intended to supply the needs of the Israeli market… In addition, on the basis of the Tzemach Committee report, natural gas exports are subject to prior approval."

In February, the Tamar partners signed a letter of intent for the export of liquefied natural gas (LNG) with Levant LNG Marketing Corporation (a special purpose company formed by South Korea's Daewoo Shipbuilding & Marine Engineering Co. Ltd. (KSX: 42660), which will build and operate the LNG facility, Norway's D&H Solutions AS, and Next Decade LLC), and a Swiss unit of Russian energy giant Gazprom JSC (RTS: GAZP; LSE: GAZD; DAX: GAZ)). The quantity of LNG exported will be 3 million tons per annum ( equal to 4.2 billion cubic meters a year) for 20 years at a FOB (free on board) price linked to the Brent crude price.

Natural gas deliveries from Tamar to Israel are due to begin in April, when Noble Energy will connect the wellheads at Tamar to the production platform offshore from Ashkelon and to the onshore terminal.

Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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