BLBG:Delek, Partners Sign $5 Billion Tamar Gas Deal With Dalia
Delek Drilling-LP (DEDRL) and its partners in Israel’s Tamar gas field signed a $5 billion agreement to supply Dalia Power Energies Ltd. with natural gas for 17 years.
Dalia will begin receiving gas in the second half of 2014, Netanya, Israel-based Delek Drilling and its partners said in a filing today with the Tel Aviv Stock Exchange. 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,” Richard Gussow, an analyst at Deutsche Bank AG in Tel Aviv, said by telephone today. “The price is in line with the market. The new IPPs will be fairly significant customers of the natural gas.”
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 percent of national energy consumption, making it one of the country’s biggest privately operated power stations, Dalia said on its website.
Delek Drilling rose 1.3 percent to 14.68 shekels at 10:04 a.m. in Tel Aviv. The TA-25 benchmark index rose 0.1 percent.
To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net
To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net
