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Jordan's gas deal with Israel finally gets the green light

sourcePublished April 5th, 2015 - 06:49 GMT via SyndiGate.info

time2015/04/15

Prime Minister Benjamin Netanyahu togetherwith Energy and Water Minister Silvan Shalom authorized Thursday the sale ofnatural gas from Israel’s Tamar gas field to private clients in Jordan.

Under the terms of the $500-million deal,the Tamar natural gas reservoir partnership will sell 1.87 billion cubic metersof natural gas to Jordanian companies Arab Potash and its affiliate JordanBromine over the next 15 years.

Shalom called the deal a “historic andsignificant agreement in Israel’s foreign relations” and asserted that thecooperation between the two countries would open the door to additionalagreements with other regional countries.


“Despite the difficulties in recent months, this initial deal willsolidify Israel’s status as an international energy supplier,” Shalom said in astatement.


The deal has faced obstacles in bothcountries, stalling the agreement several times last year.


In December, Israel’s anti-trust authoritysought to void the partnership that allows its chief companies — the US-basedNoble Energy and Israel’s Delek Group — to develop the Leviathan and Tamar gassites in the Mediterranean, over concerns the companies would monopolize themarket.


The decision meant that Noble and Delekwould have to sell their shares in either Leviathan or the smaller Tamar field,or break up the consortium.


Talks between Amman and Jerusalemthroughout 2014 over a proposed gas pipeline sparked an angry backlash inJordan, with many politicians rejecting the agreement for political reasons.


In February, the Tamar partnership signed a$1.2-billion deal with Egyptian company Dolphinus Holdings to export fivebillion cubic meters of natural gas over the next five years.


In 2013, Israel decided to export 40percent of the country’s offshore gas finds, in an effort to transform Israelfrom an energy importer to a major world player in the gas market.


By Tamar Pileggi