The Tamar natural gas field partners have signed a $200 million gas supply contract with GP Global Power Ltd., owned by chairman Ehud Ben-Shach and the Caspi family.
Trading in the shares of Tamar's Israeli partners Delek Group Ltd. (TASE: DLEKG) and its energy exploration units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L), as well as in Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and Alon Natural Gas Exploration Ltd. (TASE: ALGS) was heavy following the announcement.
Global Power develops projects and invests in infrastructures and energy. It is due to build a 120-megawatt power station at Dimona Silica Industries Ltd. (DSI). The company said that the gas supply agreement guarantees its ability to achieve commercial operations and the supply of electricity and thermal energy by three power stations in 2014.
Ben-Shach said, "This agreement is an important step in Global Power's development. It is also a new basis for gas purchase agreements, which allow high certainty in predicting the price of natural gas in the medium and long term on one hand, while hedging the short and medium-term price of natural gas on the other hand. The use of power generated by small and mid-sized power stations allows large companies and enterprises to greatly reduce their energy costs, while providing greater flexibility in the electricity supply. Global Power has agreements to build power stations with leading Israeli companies as part of its relative advantage in building small and mid-sized power stations.
Published by Globes [online], Israel business news - www.globes-online.com - on January 1, 2014
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