The partners will supply 4.5 BCM of gas to the Alon Tavor and Ramat Gabriel power stations.
The Tamar natural gas field partners - Noble Energy Inc. (NYSE: NBL), Delek Group Ltd. (TASE: DLEKG), Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L), and Alon Natural Gas Exploration Ltd. (TASE: ALGS) - have signed a gas supply agreements with the Alon Tavor and Ramat Gabriel power stations for the supply of 4.5 billion cubic meters (BCM) of gas for more than $1 billion. The two agreements are for 15 years from the start of deliveries or until the contract quantity of gas is supplied, whichever comes first.
The buyers have committed to take or pay a minimum quantity of gas a year, pursuant to a mechanism set out in the supply agreements. The agreements also include arrangements for reduced gas deliveries during the interim period until the gas pipeline's capacity is expanded to the stipulated quantity. The agreements are subject to several conditions, the most important of which are permission from the Antitrust Authority and financial closing by the ventures.
Earlier this week, the Tamar partners signed a $750 million gas supply contract with Delek unit IPP Delek Sorek Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2014
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