Leviathan drill 521.
(photo credit: Albatross)
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.
agreement was signed mainly due to the delay in gas supplies from
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.
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.”