Egypt's East Mediterranean Gas Company (EMG) closed a huge $2.1-2.5 billion natural gas delivery contract with private power producer Dorad Energy Ltd. just three days after rival Yam Tethys beat EMG to win a $1 billion natural gas contract with Israel Electric Corporation (IEC) (TASE: ELEC.B22).
The Dorad Energy contract is for the delivery of 750 million cubic meters of gas a year, worth an estimated $125-150 million, over 17 years, with an option to extend for five years, for a total of 12.5 billion cubic meters.
Dorad Energy plans to build a private power plant at the Eilat Ashkelon Pipeline Company terminal in Ashkelon by 2012, at an estimated investment of more than $1 billion.
Dorad Energy is owned by EAPC, Gazit-Globe Ltd. (TASE: GLOB) unit Uri Dori Engineering Works Corp. (TASE: DORI), Edeltech Holding Ltd.. and Turkey's Zorlu Industrial and Powerplants Construction Co. Inc. EMG's shareholders include Joseph (Yossi) Maiman.
Published by Globes [online], Israel business news - www.globes-online.com - on July 28, 2009
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