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Palestinian utility secures Leviathan natural gas

Jan. 6, 2014 at 7:16 AM   |   Comments

TEL AVIV, Israel, Jan. 6 (UPI) -- Partners developing the Leviathan natural gas field in the Mediterranean Sea said Monday a Palestinian utility company is the first to secure a supply contract.

Delek Drilling Ltd. and Avner Oil Exploration said they signed a 20-year supply agreement with the Palestine Power Generation Co.

"According to the agreement, the purchaser will acquire natural gas from the sellers for power plant operating needs that the purchaser intends to build near Jenin in the northern West Bank," the developers said in a statement.

Delek and Avner said the Palestinian company secured 167 billion cubic feet of natural gas from Leviathan under the terms of the agreement.

Natural gas prices will be pegged to market prices for Brent crude oil.

Delek and Avner said the deal is dependent on development of Leviathan and applicable regulations.

Leviathan, with 18 trillion cubic feet of natural gas reserves, should enter into production by 2016, officials said.

Topics: Brent Crude
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