Israel Antitrust Authority Commissioner David Gilo on Wednesday acted to help energy buyers.
With plans for breaking the natural gas cartel delayed, Gilo authorized industrial buyers to negotiate as a group with the partners of the Tamar gas field, which now has a monopoly on domestically produced gas. Gilo said he is hoping the single-buyer model will enhance buyers’ bargaining power.
“Industrial plants are suffering from a lack of bargaining power when they buy gas due to the fact that the Tamar reservoir is the sole supplier of gas in the Israeli economy right now,” Gilo said. “We hope that the savings of negotiating costs and better commercial terms that industrialists will be getting are passed on to consumers, at least partly, and benefit the wider public.”
Gilo has been in prolonged talks with the Tamar partners, which include Texas-based Noble Energy and Yitzhak Tshuva’s Delek Group, on a formula for breaking the lock they have on natural gas through Tamar and Leviathan, a much larger field in development.