Israel Chemicals Inks Natural Gas Supply Deals Worth Over $1 Billion

Deal will see Tamar and Leviathan fields supply up to 6 billion cubic meters of gas until the end of 2025 for $1.1 to$1.2 billion

FILE PHOTO: An Israeli gas platform, controlled by a U.S.-Israeli energy group, is seen in the Mediterranean sea, some 15 miles (24 km) west of Israel's port city of Ashdod, February 25, 2013. REUTERS/Amir Cohen/File photo
\ AMIR COHEN/ REUTERS

Israel Chemicals Ltd. said on Thursday it signed two deals for the supply of natural gas with the partners in the Tamar and Leviathan gas fields off Israel’s coast that could be worth more than $1 billion.

In December, ICL in December signed a 15-year deal of up to $1.9 billion to buy 13 billion cubic meters of gas from Greek energy firm Energean Oil & Gas, which operates Israel’s Karish and Tanin fields that are expected to start production in 2021.

The deals with Tamar and Leviathan are to secure the firm’s gas needs until Tanin and Karish start operating or in case the deal with Energean is terminated, ICL said in a statement to the Tel Aviv Stock Exchange.

It estimated it could buy up to 6 billion cubic meters of gas from Tamar and Leviathan until the end of 2025 for $1.1 to$1.2 billion, if the Energean deal is terminated. Tamar and Leviathan are mainly owned by Texas-based Noble Energy and Israeli conglomerate Delek Group.