Tamar Partners in USD 1.2 bln supply deal with Dolphinus Holdings

Delek Group said that the Tamar project partners signed a contract for the export of natural gas to Dolphinus Holdings.

The volume of natural gas that will be exported to the buyer under the contract is expected to be based on the volume of surplus gas available to the Tamar Partners from the Tamar project, on an interruptible basis, over a period of 7 years. The contract provides that the Tamar Partners will offer to supply the buyer a minimum cumulative volume of 5 bcm for the first 3 years of the contract, subject to the daily limit of up to 250,000 MMBtu per day and to supply limitations of Israel Gas Lines, Delek Group said in a statement.

Dolphinus Holdings will be responsible for transporting the gas from Ashkelon to Egypt via the existing gas pipeline operated by the East Mediterranean Gas Company.

The price of gas as fixed in the contract is similar to the prices set in other contracts for the export of gas from Israel and is essentially based on linkage to price per barrel of Brent oil and includes a minimum price.

The contract also provides that the Tamar Partners will have first refusal rights over any volume of natural gas that the buyer will request to import from Israel to Egypt via the EMG pipeline, and the Tamar Partners will not sell and pipe additional volumes of natural gas from the Tamar project to Egypt via the EMG pipeline without the consent of the buyer.

The Tamar Partners estimate that the cumulative revenues from the sale of the minimum cumulative volume to Dolphinus Holdings could amount to USD 1.2 billion.

Image: Delek Group