NewMed Energy Insists Gas Deal Canceled Despite Regulatory Approval

NewMed Energy is maintaining its cancellation of a 20-year, $6.7 billion natural gas deal with Dalia Power Plants, despite the Antitrust Authority ultimately approving all terms. The deal, originally canceled by NewMed in September, was for gas supply to two new Dalia power stations. Dalia and its parent company, Merhav Energy, reported to the stock exchange that NewMed insists the deal is off, though the specific reason remains unclear. NewMed's official stance is that the deal's conditions precedent were not met on time. These conditions included securing financing approval and clearance from the Antitrust Authority. While the Antitrust Authority initially raised significant objections, including concerns about the long duration of the contract (2030-2050 without an exit clause) and provisions for reselling gas, it eventually withdrew all demands for substantial changes. The agreement allowed Dalia to renegotiate prices in 2041 with a potential 10% adjustment, and to reduce consumption by 30% if unsatisfied, sourcing the remainder elsewhere. It also permitted Dalia to sell up to 15% of its purchased gas to third parties. Despite the regulator's approval of these clauses, NewMed continues to assert the deal's cancellation, citing its September 24, 2026, cancellation notice as valid due to unmet conditions. Dalia, however, maintains the contract is in effect, arguing NewMed's cancellation notice was invalid and that the agreement became binding upon the fulfillment of its conditions. Dalia intends to pursue all its rights under the agreement and law, potentially leading to legal action. NewMed has not yet commented on its objectives or whether it seeks further amendments.