IEC board approves deal with Tamar partners

Israel Electric Corp. chairman says deal is "perhaps the largest agreement ever signed in the Israeli economy."

Tamar 311 (photo credit: Courtesy)
Tamar 311
(photo credit: Courtesy)
The Israel Electric Corporation (IEC) board of directors this evening approved an $8 billion agreement to buy natural gas from the Tamar partners Thursday. The agreement concludes two years of negotiations. The contract is expected to officially be signed before the end of this month.
The Tamar partners are Noble Energy Inc., Isramco Ltd.,  Delek Group Ltd., Delek
Drilling LP,  Avner Oil and Gas LP, and Dor Alon Energy Ltd.
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The agreement will encompass over 15 years of gas sales and the size of the deal is likely to reach $8 billion- $5 per thermal unit. The price will be up for review in mid-2013 when gas from the Tamar field starts flowing.
IEC chairman Yiftach Ron-Tal said that "the agreement is an expression of the gas revolution in which we are living and of the State of Israel's ability to achieve full energy independence. This is perhaps the largest agreement ever signed in the Israeli economy. This agreement promises Israel stability in gas supply."
Negotiations dragged on because the IEC refused to withdraw its demand to receive the lowest possible price, which it insisted upon before signing.