“There is a vital need to rescue the Israeli natural gas market from the freeze it entered after the antitrust regulator decided to retreat from the draft agreement formulated with the holders of ‘Tamar and Leviathan’; and after I arrived - based on the expert opinions presented to me - at the unequivocal conclusion it was necessary - in other words, vital - for the foreign policy and security of the state,” said Prime Minister Benjamin Netanyahu of his decision to bypass the antitrust authority’s objections under Article 52, in a personal affidavit filed on Monday with the High Court of Justice.
He wrote: “This freeze or a serious delay in the development and expansion of the holdings may significantly damage the security of the state and its foreign relations and prevent Israel from currently seizing temporary opportunities. Already I have witnessed the policy opportunities for Israel - enabled by the gas framework - to strengthen its foreign relations.”
Netanyahu claimed the framework agreement should also be approved because of the stability it will provide the Israeli electricity market. He further said a gas market freeze would “perpetuate a monopoly in the sector for many years and prevent the emergence of competition.”
The Israeli prime minister’s statement contrasts sharply with the gas framework opponents, who claim the current draft of the agreement perpetuates the monopoly of the market.
Netanyahu strongly objected in the affidavit to claims he used security considerations merely to activate his authority under Article 52. He said: “All other alternatives presented were theoretical or infeasible given a timetable that will meet the many needs addressed by the agreement.”
The prime minister also addressed the ‘regulatory stability’ clause, claiming the development framework would not be possible without it: “Israel is being seen in the world as an over-regulated country… a problem which has become evident with the natural gas production - which requires billions of dollars in investment and specialized expertise of oil and gas companies not to be found in Israel.”
Netanyahu will personally testify at another High Court session next week.
Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2016
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