Israel Corporation, a holding active in chemicals (mainly fertilizers), energy, shipping and transportation, has signed a gas supply contract worth $4bn with the Tamar partners.
Under the agreement, three Israel Corp. subsidiaries will buy a total of 16 to 20 bcm of gas from the Tamar field over a period of several years. Israel Chemicals will buy 0.3 bcm/year through 2017 for its new power station, which will come on line in 2015; Oil Refineries will by 1 bcm/year of gas in a seven-year contract; and OPC, whose power station will come on line in the second half of 2013, will buy 0.5 bcm/year in a 16-year contract. Tamar is scheduled to begin production in 2013, and contains an estimated 255 bcm of natural gas.
In 2010, Israel Corp. had selected East Mediterranean Gas, an Egyptian company, over Tamar, but the contract was never fulfilled, due to the interruption of gas supply to Israel following political troubles in Egypt and a series of attacks on the pipeline in the Sinai peninsula.
These new agreements will then both strengthen the Tamar project by ensuring a stable outlet for gas production and reduce Israel dependency on Egyptian gas.
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