Tamar Partners Sign Gas Deal With IEC

The Tamar natural gas field partners have signed the final gas supply contract with Israel Electric Corporation, including the amendments demanded by the Antitrust Authority and the Public Utilities Authority (Electricity), Globes has reported.

The amendments state that IEC's right to exercise its option to increase contractual gas quantities will be divided into two: until April 15, 2013, IEC may exercise its option to increase the contractual amounts that it will consume through the end of 2019; and until April 15, 2015, it may extend the option to increase the contractual amounts that it will consume from the beginning of 2020 through the end of the contract.

The amendments also state that for the 24,000 million BTU per hour of natural gas that IEC will consume under the option, the price rise linkage mechanism will be revised, so that the price that IEC pays for the additional quantities will be calculated at a 30 percent linkage to the US Consumer Price Index (CPI).