Prime Minister Benjamin Netanyahu, Minister of National Infrastructures, Energy, and Water Resources Silvan Shalom, and Ministry of National Infrastructure, Energy, and Water Resources Petroleum Commissioner Alexander Varshavsky today authorized the the Tamar natural gas reservoir partnership to export gas to private customers in Jordan.
Under the agreement, Israel will export 1.8 BCM for 15 years for $500 million to bromine factories and Arab Potash company on the Jordanian side of the Dead Sea.
This is the first time that the Israeli government has approved a gas export contract for the purpose of strengthening relations with neighboring countries.
The Tamar partnership recently signed a gas export contract with Egyptian company Dolphinus with a minimum quantity of 5 BCM over the first five years for an estimated $1.2 billion (NIS 5 billion).
Under this agreement, Israel will deliver natural gas to Egyptian industrial customers, thereby helping Egypt deal with its severe energy crisis.
Shalom said, "This is a historic and significant agreement in Israel's foreign relations, and opens the door to additional agreements with countries in the region. The natural gas agreement follows the Red Sea-Dead Sea Canal project and the water agreements I recently signed, all of which are indications of the strong relations being formed between the countries."
Published by Globes [online], Israel business news - www.globes-online.com - on April 2, 2015
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