Companies in Israel’s natural gas field has signed a $10 billion agreement with Jordan to supply the country with gas, thus pushing Israel into a natural gas powerhouse. The Wall Street Journal reported:
Noble Energy Inc. of Houston and its partners in the Leviathan gas field will supply Amman-based National Electric Power Co. with 1.6 trillion cubic feet of gas over 15 years, the company said.
Leviathan is the largest natural-gas reserve in Israeli waters. The country’s officials hope development of the field can spur regional exports and deepen economic and diplomatic ties with some traditionally hostile neighbors such as Jordan, which has few energy sources of its own.
Experts have found that the Tamar and Leviathan fields are worth $25 billion with enough natural gas “to supply Israel for 100 years.” The country’s highest court decided against the “initial framework to develop” the fields, stating the “deal unconstitutional” since a clause gives “energy companies pricing and regulatory stability for 10 years regardless of potential shifts in the government or its policies.”
Noble Energy, who has the largest stake in the fields, and Israel’s Delek Group belong to the consortium along with Avner Oil Exploration LP, and Ratio Oil Exploration LP. From The Times of Israel:
Energy Minister Yuval Steinitz (Likud) on Monday praised the deal as “an extremely important national achievement.”
“This is an important milestone in strengthening the ties and strategic partnerships between Israel and Jordan and the entire region,” he said, according to Channel 10.
Delek Drilling CEO Yossi Abu said the deal marked “a historic day,” according to the Hebrew-language NRG website. The agreement “establishes the Leviathan oilfield as a serious player on the energy map,” he said.
“Supplying natural gas to Jordan will enable our neighbors in Jordan to benefit from efficient, clean and cheap energy, just like the citizens of Israel,” he said. “It will contribute to the prosperity of Israel and Jordan and will strengthen ties and active partnerships between the two.”
But terrorists groups have longed targeted Israel, raising security concerns. Noble Energy knew Hezbollah would target the rigs so they started working with the Israel Defense Forces (IDF) for protection. In 2015, Israel signed contracts with Germany to purchase warships worth $480 million. These ships will carry the sea-based Iron Dome to protect the fields and rigs.
Introducing C-Dome missile defense system. Why does it look familiar? pic.twitter.com/KQjcWlqpjr
— LTC (R) Peter Lerner (@LTCPeterLerner) May 18, 2016
Donations tax deductible
to the full extent allowed by law.