Tamar partners sign $3.5 billion deal to provide gas to private company

10/15/2012

Tamar partners sign $3.5 billion deal to provide gas to private company

BY SARA TOTH STUB

JERUSALEM--Partners in Israel's offshore Tamar natural gas field said on Monday that they have signed a deal worth $3.5 billion to provide gas for 16 years to private power company Dorad Energy.

The deal calls for providing 13.2 billion cubic meters of natural gas, although Dorad may buy less, depending on its needs, according to a statement from Avner Oil Exploration Ltd. Partnership, one of the Tamar partners.

Tamar

The Tamar field, which contains about 9 trillion cubic feet of natural gas, is scheduled to begin production next year. Its partners have already signed other supply deals, including one worth $20 billion with the state-run electric company.

Dorad is in the process of building a power plant that will have the capacity to produce 800 megawatts, and meet about 8% of Israel's electricity needs.

Avner and Delek Drilling Ltd. Partnership, both subsidiaries of Delek Group Ltd., each hold a 15.6% stake Tamar. Tamar's other major stake holder is Houston-based Noble Energy Inc.

Dow Jones Newswires

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