Israeli cabinet approves gas deal with US-Israel consortium

MK Shelly Yachimovich on Thursday attacked economic ministers Kahlon and Deri, whom she said should have prevented the advancement of the Israeli government’s new offshore gas agreement with several energy companies, including Delek and Noble Energey.

An Israeli choice to take advantage of offshore pure fuel reserves is a vital milestone for the nation’s financial system, the nation’s prime minister stated.

“This does not mean that Noble Energy (of Houston, Texas) will walk away from such promising property”, Landau explained, adding: “The story is very simple – it would become impossible to raise and invest the necessary billions without which we will continue to ramble on, but the gas will stays at the bottom of the sea”. “The true pursuits of the State of Israel require the passage of this define as shortly as potential”.

They have also teamed up to develop the offshore Leviathan field, considered to be the largest in the Mediterranean.

Tamar is already producing and Leviathan is expected online as well in that time.

The negotiations that surround the deal have been very controversial with some critics anxious it favors the consortium of companies unnecessarily.

Environmental Protection Minister Avi Gabbay voted against the deal.

In May, antitrust commissioner David Gilo said he was resigning over his opposition to the dominant position of Noble and Delek in the Leviathan and Tamar fields.

Israel and the developers of the country’s natural gas fields reached an agreement on a regulatory framework, coming one step closer to resolving a dispute that’s held up production.

The sides also agreed that while the government will be bound to the agreement for 10 years, the Knesset will not be, and may vote on changes to it in the future.

Energy Minister Yuval Steinitz said: “With the approval of the outline, we will start moving forward the development of Leviathan, Karish and Tannin, creating competition and dismantling the [energy] monopoly”.

Israel Radio reported Tuesday that Kulanu party member MK Rachel Azaria said she would oppose the current gas plan if it doesn’t include direct price controls, a cut in the volume of gas permitted for export, and the laying of a second pipeline to the Tamar field.