IEC exercises option for Tamar gas

Delek Group informed that Tamar partners have signed a deal with Israel Electric Corporation to increase the amount of natural gas delivered from the Tamar field. 

According to a stock exchange filing, IEC will purchase up to 87 billion cubic meters of gas from the Tamar field until 2028.

IEC previously signed 15-year deal to buy up to 82.5 bcm of gas starting in 2013 with an option to increase the amount to 99 bcm.

As Reuters reported, IEC only partly exercised the option as it expects the Leviathan field to start production. Local media estimated the option to be valued at US$6 billion with the total deal reaching $23 billion.

Partners in the Tamar field are Noble Energy with a 36% stake, Isramco Negev with 28.75%, Avner Oil Exploration and Delek with 15.625% stake each and Dor Gas owning 4% stake.

LNG World News Staff; Image: Delek Group