(from Natural Gas Asia) Delek Drilling-LP (DEDRL) and its partners in Israel’s Tamar gas field have signed a $5 billon agreement to supply Dalia Power Energies Ltd. with natural gas for 17 years.
Bloomberg reports that Tel Aviv-based Dalia Power is building a power station using natural gas at the Tzafit site in central Israel. Once completed, the plant would supply some 8 per cent of national energy consumption, making it one of the country’s biggest privately operated power stations. Israel is encouraging the development of independent power producers to introduce competition in a market monopolized by state-owned Israel Electric Corp. “This is one of several deals that we expect to come,” said Richard Gussow, an analyst at Deutsche Bank AG in Tel Aviv.
In November of last year, South Korean giant Daewoo signed a deal with the partners in the Tamar field, (Noble, Delek Group and Isramco Inc.) to develop the Tamar gas field. Daewoo expects to produce liquefied natural gas from the field by the end of 2016. Estimates put the field to have 240 billion cubic meters of natural gas.
One bright spot in Israel’s financial markets. Today Israel’s Haaretz news organization posted a fairly bleak story on Israel’s financial markets. (http://www.haaretz.com/hasen/spages/1065141.html) Nothing new in that; stories of down markets are the daily fare in the midst of our worldwide economic meltdown. There was, however a bright spot (brilliant bright!) “Isramco, a main partner in the Tamar-1 exploration that found the huge field of gas off the Haifa shore, exploded upwards again, closing 24% higher on huge turnover of NIS 90 million.” Stock value in Delek Group, also a partner in the Tamar-1 gas discovery, has more than doubled in the last two months. Could Israel’s massive gas discovery (and possibly and oil discovery in the near future) play a major role in saving Israel’s economy? It looks like it already is. Just so you know, here are the partners in the Tamar -1:
Who all is involved in Israel’s offshore gas discovery? Just so you know, here are the partners in the Tamar -1:
1. Noble Energy: 36 percent (Houston, TX, ticker symbol: NBL – NYSE, http://www.nobleenergyinc.com)
2. Isramco Negev: 28.75 percent (Petach Tikvah, Israel, ticker symbol: ISRA.L – TLV)
3. Avner Oil Exploration: 15.625 percent (Petach Tikvah, Israel, ticker symbol: AVNR.L – TLV)
4. Delek Drilling: 15.625 percent (Netanya, Israel, ticker symbol: DEDR.L –TLV, http://www.delek.co.il )
5. Dor Gas Exploration: 4 percent (Yakum, Israel)
JERUSALEM, Jan 1 8 (Reuters) – Shares of Israeli energy companies soared on Sunday after an exploration group led by Noble Energy (NBL.N) said it discovered more than 3 trillion cubic feet of natural gas off Israel’s Mediterranean coast.
Among Israeli partners in the Yam Thetis consortium, Isramco (ISRAp.TA), with a 28.75 percent stake, led gainers with a nearly 130 percent surge.
Delek’s parent, Delek Group (DELKG.TA), rose 54 percent.
Overall, the blue-chip Tel Aviv 25 index .TA25 was up 2.6 percent, while the broader TA-100 .TA100 was 3.7 percent higher at midday.
(Reporting by Steven Scheer; editing by John Stonestreet)