Tycoon Yitzhak Tshuva Scuttles $6.7 Billion Gas Deal
Translated & summarized from Maariv by baba
Tycoon Yitzhak Tshuva's NewMed Energy and its partner Ratio have canceled a $6.7 billion natural gas sale deal with Dalia Energies, citing a failure to secure timely regulatory approvals. Dalia Energies disputes this, claiming approvals were met and intends to pursue legal action to uphold the agreement. The deal, set to supply gas from the Leviathan drilling starting in 2030, has surprised the energy sector amid global market shifts. Dalia Energies plans to engage the Ministry of Energy before resorting to legal measures.
The story in 6 lines · by baba
- Yitzhak Tshuva's NewMed Energy canceled a $6.7 billion gas deal with Dalia Energies.
- The cancellation is attributed to a failure to obtain timely regulatory approvals.
- Dalia Energies disputes the cancellation, citing timely approvals and intending legal action.
- The deal involved natural gas supply from the Leviathan drilling starting in 2030.
- Market speculation suggests the deal became financially unviable due to global gas market changes.
- Dalia Energies will first approach the Ministry of Energy before legal proceedings.
Business magnate Yitzhak Tshuva, the controlling shareholder of the Delek Group which owns NewMed Energy, has reportedly scuttled a $6.7 billion deal to sell natural gas to the private power producer Dalia Energies. NewMed Energy, in partnership with Ratio, announced the deal's cancellation to the stock exchange, citing the failure to obtain regulatory approvals on time. However, Dalia Energies disputes this, asserting that the approval from the Competition Authority was received on schedule and all other conditions for the deal's completion were met. The company intends to pursue its legal rights to enforce the agreement.
Dalia Energies operates natural gas-fired power plants, which were slated to receive gas from the Leviathan drilling starting in 2030 under the now-canceled agreement. The cancellation has surprised the energy sector, with market speculation suggesting that changes in the global gas market and current deal terms have rendered it financially unviable for Tshuva's companies. This comes after the Leviathan partners completed a separate, massive $35 billion gas export deal to Egypt through 2042 earlier in 2026, a deal that faced criticism over concerns about depleting Israeli gas reserves. Dalia Energies is expected to first involve the Ministry of Energy before initiating legal proceedings.
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