There are growing concerns that Yam Tethys cannot serve as a strategic reserve for Israel. Hebrew daily "Yediot Ahronot" reports that the consultancy firm hired by the Ministry of Energy and Water Resources to examine the possibility of using the depleted gas field to store natural gas concluded that this would not be possible. Noble Energy Inc. (NYSE: NBL) is challenging the conclusion.
This means that if there is a breakdown in the gas flow from the Tamar field, Israel will have no natural gas.
The plan was to inject natural gas from Tamar into the depleted Yam Tethys field during off-peak hours when there is no need for all the gas produced from Tamar, and store the gas for when it would be needed. The government awarded a license to operate the reserve to Noble Energy and Delek Group Ltd. (TASE: DLEKG), which own the Yam Tethys license, without a tender.
The consultancy firm said that its tests found that it would not be possible to use Yam Tethys to store natural gas because water seepage and problems at the wells prevented it.
The Ministry of Energy said, "The issue of adapting the Mari B field as a reservoir for the storage of natural gas is under review by experts, and a decision on the matter will be taken in view of the results of the review."
Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2013
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