Gas Exports May Go Through Turkey

YERUSHALAYIM -

An Israeli natural gas pipeline to Europe through Turkey is being seriously considered Globes reported on Tuesday.

Delek Group, a principal player in local energy resource development, disclosed in a prospectus that it “is examining various possibilities for natural gas exports via pipelines to Jordan, and/or Turkey, and/or Egypt, and/or the Palestinian Authority, and it is in contact with various parties on this matter.”

Globes termed the announcement one of “huge political and economic significance,” adding that such a pipeline would be cheaper than building a liquefied natural gas (LNG) facility for gas from the Leviathan field off Israel’s Mediterranean coast.

The purchase comes against the backdrop of an ongoing struggle between the government and the Knesset over the setting of the amount of gas that will be allowed for export. The High Court has been asked by the Knesset to intervene to force the government to recognize the Knesset’s authority to determine the final policy, and hearings continue this week.

Delek Group intends to acquire 100% of the shares of subsidiary Delek Energy, of which it currently owns 87%. The deal is worth NIS 1.3 billion, based on last Thursday’s share prices.

The company explained that the offer to purchase is necessary to “flatten the pyramid,” required by Israel’s regulatory requirements, and due to the low trading volume in Delek Energy’s shares.

“The strategic focus of the company in gas in the Mediterranean renders the existence of Delek Energy redundant, as it no longer has any activity apart from its holdings in the partnership.”