Energian improves the contract in front of an energy gap

The Greek-British energy company Energian reported today (Thursday) the upgrade of the gas contracts signed at the time with Rafek Energy to operate its northern power plants

In Alon Tavor and in Ramat Gabriel. In Migdal Haemek.

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According to Energian, the company will sell an additional 0.4 billion cubic meters (BCM) to contracts that have already been signed, for a period of 15-6 years. Energian adds that with the signing of the new contract, its quota of contracts with the Israeli market reaches a supply threshold of approx. 7.4 billion cubic meters per year, based on a maximum supply volume of about 8 billion cubic meters, which is planned to reach Israel by the end of 2021.

Alon Tavor Power Station Alon Tavor Power Station Photo: Eran Yofi Cohen
The desalination plant in Soreq The desalination plant in Soreq Photo: Mark Neiman

In parallel with Energian’s report, Rapek and Generation Capital are reporting an improvement in the said contract, and provide further details that Energian did not report. The reason for their perception of improving the contract is to take advantage of the size of Energian in selling gas at the cheapest price on the market ($ 4-3.7 per unit of heat in the last round of contracts), when Rafek

Energy, which is controlled by Generation Capital, is also one of the three owners of the power plant acquired from the electricity company, which leads to the conclusion that the pricing obtained for the large power plants can also roll over for the small power plants it owns, including those in the Whistling desalination plant and in Ashkelon. Towards a purchase from Delek Group.

According to Rafek Energy, a summary of all the contracts it has with Energian – including the latest upgrade – will lead to a total supply of 1.3-1.1 billion cubic meters of natural gas for 15-6 years, and a volume that may reach a maximum threshold of about $ 2.7 billion over the entire period The streaming.