Israel Corp, Tamar in Gas Supply Talks

Israel Corporation has restarted talks with the Tamar partners to buy natural gas. The company plans to purchase 1.5-2 billion cubic meters of natural gas a year which will cost $4 billion.

Israel Corp. has currently been buying gas from East Mediterranean Gas Company.

Tamar has already inked supply deal with Edeltech Ltd. and Dorad Energy Ltd., which is in talks on a contract. All three companies previously signed gas supply contracts with EMG, which had $15 billion worth of contracts at its peak.

So far as is known, EMG is not in breach of its contract with Israel Corp., which could cause difficulties for Israel Corp. to terminate the contract without drawing a sharp reaction from EMG. For this reason, Israel Corp. may present a deal with the Tamar partners as a supplemental supply agreement or as a back-up deal.