Globes: Security cabinet to consider gas industry structure

A final attempt made to reach agreements between the state and the natural gas companies before the compromise structure in the gas industry is presented to the cabinet for approval ended unsuccessfully. Over the past week, the parties held marathon talks aimed at settling outstanding material issues, such as the price of gas and the export quotas. Another meeting took place today, but ended without a breakthrough. The proposed compromise will be brought before the security cabinet on Sunday for approval. Nevertheless, even if the cabinet accepts that a political-security issue is involved that justifies bypassing Antitrust Authority director general Prof. David Gilo, the gas companies have made it clear that they will not be willing to sign an agreement that will not be comprehensive and final.

The gas companies and the state reached agreement last month on a general outline for the structure of the gas industry, six months after Gilo declared that changes should be made in it. The plan includes structural changes, mainly in the Tamar reservoir, with Delek Group Ltd. selling its 31% stake in the reservoir to a third party within six years and Noble Energy diluting its current 36% holding to 25%. Delek Group and Noble Energy will also sell their holdings in the Karish and Tanin reservoirs. It was decided not to intervene in the structure of the Leviathan reservoir in order to avoid complicating its development.

There are still substantial unsolved issues, however. One of the most important ones is the price of gas in the future gas contracts to be signed with the companies' customers for the Tamar reservoir.

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