Delek Group on Monday said that, together with its Leviathan gas field partners, Noble Energy, Avner Oil Exploration and Delek Drilling, it has signed a US$3 billion gas supply deal with I.P.M. Beer Tuvia.
Under the agreement, the Leviathan partners will supply 13 billion cubic meters of natural gas to I.P.M. Beer Tuvia to fire up the power station that it intends to set up in the Beer Tuvia Industrial Zone.
Leviathan partners informed in a statement, the deal ends once the buyer has consumed the agreed amount of natural gas or 18 years following the commercial start of operations at the power plant, or the Leviathan project.
I.P.M. Beer Tuvia has the option to extend the supply contract to up to two years and additionally, reduce the minimum annual amount to 50 percent of the average annual amount it has consumed in the three years preceding the exercise of the option.
The statement reveals the Leviathan partners are expecting to reach the final investment decision by the end of 2016.