Israel Corp. unit signs Yam Tethys gas deal

This is in addition to the agreement that Oil Refineries has with the East Mediterranean Gas Co. Ltd. for the supply of gas from Egypt.

By AMIRAM BARKAT/GLOBES
May 22, 2011 23:00
1 minute read.
Leviathan gas site.

Leviathan drill 521. (photo credit: Albatross)

 
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Israel Corp. subsidiary Oil Refineries Ltd. has signed an agreement with Delek Group Ltd. and Noble Energy Inc. for the supply of gas from the Yam Tethys field. This is in addition to the agreement that Oil Refineries has with the East Mediterranean Gas Co. Ltd. for the supply of gas from Egypt.

The new agreement was signed mainly due to the delay in gas supplies from Egypt.

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Supply has not been resumed since the terrorist attack on the Sinai pipeline on April 27, and Oil Refineries is committed to meet Ministry of Environmental Protection standards on emissions.

The agreement to buy Yam Tethys gas will enable Oil Refineries and its subsidiaries to receive a guaranteed supply of natural gas.

Under the new agreement, Oil Refineries will buy 1.2 billion cubic meters of natural gas over a period of 27 months starting June 2011. The deal is valued at $350 million. In the event that Oil Refineries does not purchase the full amount of gas during the 27 month period then there is an option to extend the period of purchase.

Oil Refineries CEO Pinchas Buchris said that “the signing of the agreement with Yam Tethys in addition to the existing agreement for the supply of Egyptian gas finally completes Oil Refineries’ transition to using natural gas as the company’s main energy source and ensures a reliable, continuous supply of gas to the Group’s plant, and the major financial savings entailed.”

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