TEL AVIV, Israel – Delek Group says the partners in the deepwater Leviathan project offshore Israel have signed a non-binding letter of intent (LOI) with Edeltech.
All sides confirmed their intent to conduct negotiations on agreement to supply gas for use in Israel’s domestic market.
The binding agreement, if signed, would involve a total of around 14.8 bcm over a period of 17 years, with the price linked to the electricity production tariff, to be determined periodically by Israel’s Electricity Authority.
The binding agreement would be in addition to a supply agreement that Edeltech signed with the Leviathan partners last year.
Edeltech is a private company owned by the Edelsberg family. It is a partner in the Dorad power plant and has other cogeneration plants, Ashdod Energy and Ramat Negev Energy.