Leviathan Partners Sign $1.3 bn Gas Supply Deal with Edeltech

Leviathan Partners have signed a natural gas supply deal with Edeltech Ltd.

On Saturday an agreement was signed whereby Edeltech will buy six billion cubic meters of natural gas for the purpose of operating power plants which it is due to build, together with its Turkish partner Zorlu, in Ashdod and Mishor Rotem.

The gas price determined in the agreement shall be linked to the electricity production tariff, as determined from time to time by the Public Utilities Authority-Electricity, and includes a “floor price”, Delek Group said Sunday.

The Leviathan Partners estimate that the aggregate revenues from the sale of natural gas to Edeltech may amount to $1.3 billion.

The term of the agreement will commence on the date of the gas flow in commercial quantities from the Leviathan reservoir to the buyer and shall end 18 years after this date or on the date on which the buyer shall consume the total contractual quantity, whichever is earlier. The parties are entitled to extend the term of the supply agreement by a period of up to two additional years or until the date of consumption of the total contractual quantity, whichever is earlier.

The partners in the Leviathan project and their holding rates are as follows: Noble Energy Mediterranean Ltd. 39.66%, Delek Drilling - Limited Partnership 22.67%, Avner Oil Exploration - Limited Partnership 22.67% and Ratio Oil Exploration (1992) - Limited Partnership 15%.