Israeli Parliament Approves Gas Development Deal

Israel's parliament, Knesset, on Monday cleared a deal that would make way for the development of three offshore natural gas fields.

The deal was approved on by a vote of 59 to 51.

"This is a great day for the State of Israel. I am committed to bringing the gas to the Israeli economy, the hundreds of billions for the education, social welfare and health of Israel's citizens, and tens of billions for investments and jobs,” Prime Minister Benjamin Netanyahu said about the gas outline.

The outline plan would allow increase in the quantity of natural gas produced at the Tamar natural gas field and development of the Leviathan, Karish and Tanin natural gas fields by a consortium led by Noble Energy and Israel's Delek Group.

“We have improved the outline. It passed the cabinet and passed the Knesset by an overwhelming majority. There is one more obstacle but when I want to achieve something, I achieve it. There will be gas for Israel. I want it for the citizens of Israel, to lower the cost of living, to channel vast sums to the state coffers for energy security. This will be achieved. We are moving forward step by step and overcoming one obstacle after another,” Netanyahu added.

The government has been negotiating the framework with Noble Energy Inc. and Israel’s Delek Group Ltd., owners of Tamar and Leviathan gas fields. 

As per the latest plan Nobel and Delek have to cut stake in Tamar field in order to keep their stake in Leviathan field.

In December, Israel’s Anti-Trust Authority recommended the breakup of the consortium over monopoly fears.

News agency Reuters said in a report that for the government and companies to move forward with the framework agreement parliament still needs to approve a measure that transfers power to override the regulator from the Economy Ministry to the cabinet.

It was unclear when such a vote would take place since Prime Minister Benjamin Netanyahu may not have the support of enough of his coalition partners, Reuters added.