Gas deal may soon be back on track after partners reportedly agree to update

The latest version of the deal still requires approval from the government, which the ministry expects in the coming days.

May 18, 2016 20:05
1 minute read.
THE TAMAR gas field platform juts above the Mediterranean

THE TAMAR gas field platform juts above the Mediterranean. (photo credit: MARC ISRAEL SELLEM)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


The plan to develop the 621-billion-cubic-meter Leviathan offshore natural gas field may soon be back on track after the two biggest framework stakeholders accepted an updated version of a disputed stability clause, according to the spokeswoman for National Infrastructure, Energy and Water Minister Minister Yuval Steinitz.

In a statement from the minister's spokeswoman on Wednesday evening, it was reported that representatives from Delek Group Ltd.and Noble Energy Inc. met with Steinitz earlier in the day and agreed to a version of the stability clause that would allow future governments to have input regarding changes to Israel's natural gas policy, should it be necessary.

This latest version of the deal still requires approval from the government, which the ministry expects in the coming days.

Steinitz said that the new clause version was a “suitable replacement for the stability clause, based on the principles outlined by the High Court.”

I am full of hope that the develop of the Leviathan gas field, which began last January, will now be able to continue according to the original timeline set down in the framework,” he said. “This year it could be possible to open up Israel's economic waters to renewed exploration for oil and gas with additional international energy companies.”

Houston-based Noble Energy owns a 39.66 percent stake of the Leviathan reservoir, while Delek Group subsidiaries Delek Drilling and Avner Oil Exploration – each holding 22.67%, and Ratio Oil Exploration holding a 15% share.

A spokeswoman for Delek had no comment about the report and a spokeswoman for Noble Energy was not available for comment.

On March 27, the High Court struck down a section of the framework that would have guaranteed companies fixed natural gas prices and regulations for 10 years.

The consortium has set 2019 as the year for which it hopes natural gas will begin flowing to consumers, though representatives have said that a framework must be approved by the end of 2016 for this to happen.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Workers strike outside of the Teva building in Jerusalem, December 2017
December 18, 2017
Workers make explosive threats as massive Teva layoff strikes continue