The competition commissioner today, 31.1.21, issued to the public for comment an agreed order signed by Noble Energy Mediterranean Limited (hereinafter Noble). According to the provisions of the Noble Order, which operates the Tamar reservoir, it undertakes to respect the sale requirements separately of each of the Tamar holders, without the need for the consent of the other holders.
On January 30, 21, the holders of Tamar signed a sale agreement separately from the Tamar reservoir. In addition, Noble reached a compromise agreement with the IEC. The agreed order and the agreements signed for the needs of the agreed order regulate the alleged damage to the electricity company and include a significant improvement in the structure of competition in the natural gas market in Israel from now on.
There are three natural gas reservoirs in Israel: the Shark and Crocodile Reservoir, the Tamar Reservoir and the Leviathan Reservoir. Noble holds two of the three existing reservoirs in Israel today: Tamar is held by Noble (25%), Delek Drilling and other holders; Whale is also held by Noble (about 40%), Drilling Fuel and Ratio. In addition, Noble is the operator of both reservoirs and therefore, controls the infrastructure for the production and production of natural gas. Shark and crocodile are held by Energian and have not yet started supplying gas in Israel.
In the background of the agreed order, there is a conflict between the holders of Tamar. The conflict began after some of the owners of Tamar, which constitute the majority in the reservoir, signed a new agreement with the IEC on 4.10.20, according to which they will sell natural gas to the IEC at a price lower than the price agreed in previous IEC agreements with the Tamar and Leviathan reservoirs.
All Tamar holders have an agreement with the Electric Company since 2012, according to which, according to publications, the Electric Company purchases gas at a price of approximately $ 6.3 per unit of heat. In 2019, the IEC entered into an agreement with Levitan, according to which, according to reports, it purchases gas for about $ 4.8 per unit of heat.
According to the majority holders of Tamar and the IEC, Noble refused to supply gas in accordance with the new agreement. Following the complaints, the Competition Authority initiated an investigation into whether Noble’s behavior amounted to an abuse of its monopolistic position. Before the commissioner heard Noble’s claims, Noble sought to reach agreements.