Israel-Jordan gas export talks halted - report

Leviathan

The Jordanian House of Representatives Energy Committee head says there can be no deal until the gas picture in Israel is clear.

Negotiations on exports of gas from Israel to Jordan have been halted, Jamal Gamouh, president of the Energy Committee of the Jordanian House of Representatives told the Jordanian press. Until the picture in Israel is clarified, Gamouh said, there will be no deal.

Gamouh's statement comes after Israel's antitrust commissioner David Gilo ordered the break-up of the gas monopoly controlled by Delek Group Ltd. (TASE: DLEKG) and US company Noble Energy, which are the main partners in Israel's two largest gas reserves, Tamar and Leviathan.

Last September, a letter of intent was signed with the Kingdom of Jordan for the sale of 45 BCM (billion cubic meters) of gas over 15 years, in a deal worth $15 billion.

The supply of gas to Jordan was to have commenced once development of the Leviathan reserve was complete. The target date for this was early 2018, but in the wake of Gilo's decision it is now not clear how long development will be delayed.

Published by Globes [online], Israel business news - www.globes-online.com - on January 4, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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