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15-year gas deal signed for Israel's Tamar

Dec. 11, 2012 at 6:57 AM   |   Comments

JERUSALEM, Dec. 11 (UPI) -- The partnership tied to the Tamar natural gas field in Israel announced it signed a 15-year supply agreement with a national energy group.

The Tamar partnership -- Delek Drilling, Isramco Ltd., Noble Energy and Avner Oil and Gas LP -- signed a take-or-pay agreement with Alon Gat Energy Center, which said it would use the gas to power an industrial center.

The agreement extends for 15 years or until all of the contractual volume is consumed. Delek, in a statement, said the agreement is for up to 59 billion cubic feet of gas.

"In the agreement, the gas price will be linked to electricity production rates as determined time to time by the Public Utility and Electricity Authority, and includes a floor rate," Delek said.

Natural gas production from Tamar is expected by next year. First gas for the Alon group is expected from Tamar by 2014.

Israel is eager to diversify a natural gas sector that depends in large part on Egypt. Conflict in the Sinai Peninsula had disrupted Egyptian gas deliveries in the past.

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