Starting with the start of the flow of natural gas from the “Shark” field, Energian will sell natural gas to LPG for periods of between 6 and 15 years, with a total financial volume of up to $ 2.7 billion.
The Infrastructure and Energy Fund, Generation Capital and Rafek Communications and Infrastructure, reported today that Rafek Energy, which is held by them in equal parts, has entered into an agreement with Energian for the purchase of natural gas for all power plants operating under Rafek Energy, in order to reduce The natural gas costs of the power plants, taking advantage of the size of the energy gap and the synergy between the various power plants.
As part of the contract, the existing agreements for the purchase of natural gas were updated in relation to the northern stations in Alon Tavor and Ramat Gabriel, and in relation to the MRC power generation site in Alon Tavor, and new agreements were signed for the purchase of natural gas for Rafek Energy and the coastal stations in Sorek and Ashkelon.
In accordance with the updated agreements and the new agreements, starting with the start of the flow of natural gas from the “Shark” field, Energian will sell natural gas to LPG in an aggregate amount of between 1.1 and 1.3 BCM per year, for periods of between 6 and 15 years. $ 2.7 billion. It should be noted that a certain amount of the natural gas that will be purchased as stated in the new agreements, will be sold by Lefek Energy to third parties.
The natural gas agreements are expected to significantly reduce the costs of purchasing natural gas, which is the main input in the operation of power plants, for all power plants operating under energy supply during the periods of the agreements. In light of this, the impact of the natural gas agreements on energy supply profits during the periods of the agreements is expected to be material, and accordingly they are expected to have a positive effect on the fair value of energy supply.
Nadav Maroz, Chairman of Rafek Energy: “The natural gas agreements we signed with Energian optimally reflect the benefits of the size of Rafak Energy in the field of electricity generation, following the expansion and synergy moves we have made in the past year in this growing market. The agreements are expected to substantially reduce the costs of purchasing gas for all power plants operating under energy supply, and accordingly bring about a significant improvement in the Company’s profits. After completing the transaction for the purchase of the coastal power plants in Soreq and Ashkelon, we will have active power plants at 5 electricity generation sites with a total capacity of about 1 GB, which will strengthen Refek Energy’s position as a leading player in Israel’s electricity generation. We will continue to work to take advantage of the size and synergy between the stations as part of the continued improvement of the company’s operations. “
It will be clarified that the entry into force of the natural gas agreements is conditional, inter alia, on the approval of third parties, the completion of the acquisition of the coastal stations and the existence of specific conditions in relation to the energy supply and corporations held by it.