IEC says it is in advanced talks to cut the gas p[rice by 25% to less than $4 per MMBtu.
Israel Electric Corp. (IEC) has announced that it is in advanced talks to renegotiate the contract for natural gas supply from the Tamar Partners, reducing the price paid by 25% to less than $4 per MMBtu.
The current contract between IEC and the Tamar Partners was signed in 2012. The contract was harshly criticized because it was linked to the US Consumer Price Index and not the price of oil as was usual at the time. In addition, the IEC agreed to raise the price an additional 1% for each of the first seven year and then cut it by 1% for each of the subsequent seven years. Consequently, not only hasn't the price of the gas fallen in recent years, but has actually risen to $6.36 per MMBtu. The contract was even criticized by the State Comptroller.
Last year IEC chairman Yiftah Ron-Tal told "Globes," "We have a business obligation to cut the price of gas but beyond that we have a duty in the interest of the public who we represent."
Published by Globes, Israel business news - en.globes.co.il - on July 4, 2021
© Copyright of Globes Publisher Itonut (1983) Ltd. 2021
Tamar field Photo: Albatross