Gas Deal Still On, Delek, Noble Energy Tell Jordanians

The gas export deal with Jordan is still on the agenda, despite the events of the past few days that’s the message that senior managers at Delek Group Ltd. (TASE: DLEKG) and Noble Energy wish to convey to the Jordanians. On Sunday, Noble Energy’s Israel manager Binyamin Zomer, together with Delek Group managers Gideon Tadmor and Yossi Abu, flew to Jordan to reassure the Jordanians that the deal for the export of 45 million BCM (billion cubic meters) of gas was still alive.

In the light of the Israeli antitrust commissioner’s decision to rescind the consent decree whereby Delek Group and Noble Energy could have retained the large Leviathan gas reserve in return for selling two small reserves, Karish and Tanin, Jamal Gamouh, president of the Energy Committee of the Jordanian House of Representatives, said that the negotiations on the gas supply deal had been called off. Gamouh said that no deal could take place until the picture in Israel was clarified.

The deal in question was the subject of a letter of intent signed last September for the supply of 3-4 BCM of gas annually from Israel for 15 years to Jordanian power producer Nepco. The deal is estimated to be worth some $15 billion.

The supply of gas to Jordan was to have commenced immediately on completion of the development of the Leviathan field, the target date for which was early 2018, but it is now not clear how long development will be delayed. The final agreement was due to have been signed in Washington at the end of this month.

Bloomberg reported yesterday that the Jordanians would import gas from the Gaza Marine reserve of the coast of the Gaza Strip.

Published by Globes [online], Israel business news – www.globes-online.com