Leviathan Gas Partners Retreat From Deal, Threatening Price Controls
Translated & summarized from TheMarker by baba
Partners in the Leviathan gas field, NewMed Energy and Ratio, have withdrawn from a deal with Dalia Power Plants, despite their demands being met. The companies cited unmet conditions as the reason for cancellation. This action jeopardizes the government's promise of regulated gas prices for the domestic market, as the partners prioritize higher-priced exports, potentially increasing electricity costs.
The story in 5 lines · by baba
- Leviathan gas field partners withdrew from a deal with Dalia Power Plants after four months.
- The partners cited unmet conditions as the reason for canceling the gas agreement.
- The withdrawal raises doubts about supplying gas to the domestic market at regulated prices.
- Partners reportedly prioritize higher-priced export deals over the domestic market.
- The domestic market may face difficulties securing gas contracts, leading to higher electricity prices.
Partners in the Leviathan gas field, NewMed Energy (controlled by Yitzhak Tshuva) and Ratio, have withdrawn from a gas deal with Dalia Power Plants, a move that occurred approximately four months after the agreement was initially made. Despite the Competition Authority meeting all their demands, the partners insisted on canceling the deal, citing unmet conditions within the agreed timeframe. This withdrawal suggests the partners are unwilling to proceed with the agreement. The promise made to the government to supply gas to the domestic market at a regulated price may prove to be empty, as the partners' appetite for higher-priced exports has grown. Consequently, the domestic market may struggle to secure gas contracts, potentially leading to an increase in electricity prices.
Mentioned
