Tamar to Supply Israel Power Plants Over $1 bln of Natgas
Reuters - The partners in Israel's Tamar natural gas field said on Wednesday they agreed to sell more than $1 billion worth of gas to two power plants that are being built.
Up to 4.5 billion cubic meters (bcm) will be sold over 15 years to the Alon Tavor and Ramat Gabriel plants. A start date was not disclosed and the deal was subject to several approvals.
The partners said the price will be similar to prior supply contracts. Earlier this week, Tamar's owners said they expected to soon sign a deal to supply another power plant 3.3 bcm of gas for $750 million.
Tamar, discovered in 2009 off Israel's Mediterranean coast, is estimated to hold more than 280 bcm of gas. It began production a year ago and has already signed a number of lucrative deals in Israel.
Texas-based Noble Energy (NBL) has a 36 percent stake in the field. Delek Group, through its units Avner Oil Exploration and Delek Drilling, holds a 31.25 percent share. Isramco Negev has 28.75 percent and Dor Gas Exploration holds the remaining 4 percent.
