The Leviathan partners are in talks to market natural gas from the to potential consumers in the domestic economy, including private electricity producers and industrial consumers, the partnerships today reported to the Tel Aviv Stock Exchange (TASE). The partnerships are Delek Group units Avner Oil and Gas LP (TASE: AVNR.L), Delek Drilling Limited Partnership (TASE: DEDR.L), Noble Energy, and Ratio Oil Exploration (1992) LP (TASE:RATI.L).
The negotiations are proceeding following approval of the outline regulation plan for the natural gas sector in Israel.
Two weeks ago, senior gas company sources reported that the Leviathan partners and British Gas (BG) were negotiating the final details of a gas supply contract, and would sign it in the coming weeks.
In June 2014, the Leviathan partners and BG signed a letter of intent, under which the Leviathan reservoir would supply 105 BCM to the BG liquefaction facility in Idku, Egypt over 15 years. The value of the deal was estimated at $30 billion. This huge deal, which involves the export of one sixth of the gas reserves in Leviathan, is designed to make developing Leviathan economically viable. Because of regulatory problems, mainly in Israel, the parties have yet to sign a final agreement.
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2016
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