Dalia Power signs NIS 1b a year Tamar gas deal

Hebrew daily "Ma'ariv" reports that Dalia Power Energies Ltd., which is due to build Israel's largest private power station, has signed a contract to buy NIS 1 billion worth of natural gas a year from the Tamar reservoir. It will buy 0.7-1 billion cubic meters a year of gas

This is the first gas supply contract between the Tamar partners - headed by Noble Energy Inc. (NYSE: NBL), Delek Group Ltd. (TASE: DLEKG), and Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) - a private power company. The Tamar partners have not yet finalized a $20 billion contract with Israel Electric Corporation (IEC) (TASE: ELEC.B22), because of IEC's demand to receive the lowest price and better terms than other customers. Antitrust Authority director general David Gilo has already said that he will oppose any such preferential terms for IEC, because it would harm private power producers.

Dalia Power is building an 870-megawatt co-generation power station at Tzafit between Kiryat Gat and Beit Shemesh.

Published by Globes [online], Israel business news - www.globes-online.com - on January 5, 2012