Tamar pipeline granted 25% boost

The Ministry of Energy and Water Resources will allow compressors to increase gas deliveries by 25% to 50 million BTU a year.

The Ministry of Energy and Water Resources has allowed the Tamar gas field partners to increase deliveries by using compressors at handling facilities in Ashdod. The addition of compressors will boost gas deliveries from Tamar by 25% from 40 million British Thermal Units (BTU) per year to 50 million BTU.

The Ministry of Energy said that it made the decision due to the need to deliver more natural gas faster. The addition of compressors will enable the Tamar gas field to supply gas for both the production of electricity and for industry.

Minister of Energy and Water Resources Uzi Landau said, "We are bringing natural gas to Israel. Natural gas is a public resource that affects the lives of every citizen through a reliable supply for all of the economy's energy needs. Increasing the amount of gas that will enter Israel will ensure the operation of independent power stations, and allow manufacturers, such as Phoenicia America-Israel Flat Glass to lower costs. The ministry will continue to act to increase gas supplies from the Tamar field, including through the addition of more terminals, and it intends to expand the range of consumers and uses for the development of the economy as a whole."

The Tamar field is due to begin gas deliveries in the second quarter of 2013. The addition of compressors will boost gas deliveries through March 2015.

Noble Energy Inc. (NYSE: NBL) owns 36% of Tamar, Delek Group Ltd. (TASE: DLEKG) subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 15.625%, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) owns 28.7%, and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Alon Natural Gas Exploration Ltd. (TASE: ALGS) owns 4%.

Published by Globes [online], Israel business news - www.globes-online.com - on October 23, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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