Israel Electrical Corp. (IEC), which even after the vitality reform stays the nation’s greatest electrical energy producer, has signed a memorandum of understanding (MoU) with a number of the Tamar companions for the provision of pure fuel to its energy stations over the subsequent 10 years. IEC stated that the agreements within the MoU, “Mirror financial savings anticipated to quantity to about NIS 800 million and as much as NIS 1 billion, in contrast with the present Tamar settlement the prevailing options.” Nonetheless, this isn’t but a closing settlement, however solely a non-binding MoU, and modifications could happen earlier than the ultimate settlement is signed with the Tamar fuel subject companions.
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Over the subsequent decade, IEC will buy fuel from Tamar price $8.2 billion – between 2 and three billion cubic meters (BCM) annually. The settlement was signed with solely a number of the companions, in accordance with the precept of separate gross sales, which is designed to create competitors within the fuel market, although the 2 largest reservoirs (Tamar and Leviathan) are each operated by US vitality main Chevron. The IEC’s MoU was signed with a lot of the Tamar companions, excluding Tamar Petroleum and investments by SOCAR (the Nationwide Oil Firm of Azerbaijan). However these companions are additionally in negotiations, and in response to the IEC announcement, they may be capable to be part of the agreements inside 30 days.
Because of the IEC’s intensive manufacturing, its fuel settlement is the biggest fuel settlement in Israel, and can also be a part of what makes the Tamar reservoir so oriented in direction of native manufacturing (72% for the home economic system). That is in distinction to the Leviathan reservoir, which is export oriented (81% exports).
Printed by Globes, Israel enterprise information – en.globes.co.il – on July 27, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
