The Israel Electric Corporation (IEC) (TASE: ELEC.B22) board of directors will discuss for the first time today the impending agreement to buy natural gas from the Tamar partners. The IEC's main demand is that the price paid for the natural gas will be the lowest available on the market.
IEC is concerned about the rise in private electricity producers and the price that they will receive from the Tamar partners. Negotiations between the IEC and the Tamar partners come amid expectations that supervision will be imposed on the price of natural gas, resulting in a price lower for private producers than in the current huge agreement that IEC and the Tamar partners are hammering out.
IEC is insisting that a "Most Favored Nation" clause be included in the agreement and if this is approved it could threaten competition in Israel's energy market.
The Tamar partners are Noble Energy Inc. (NYSE: NBL) which owns 36% of the gas field, Delek Group Ltd. (TASE: DLEKG) units Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L) each own 15.625%, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) owns 28.7%, and Alon Natural Gas Exploration Ltd. owns 4%.
Published by Globes, Israel business news - www.globes-online.com - on December 8, 2011
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