The IEC will save an estimated NIS 100 million a year, thanks to the amendment of the gas purchase agreement with the Tamar Partnership and the Leviathan Partnership. Following the intervention of the Competition Authority, it was agreed that the IEC would be able to negotiate with each of the partners in the Tamar reservoir – thus maximizing competition.
The amendments were signed with the entire partnership in the Tamar and Leviathan gas reservoirs, and they regulate, among other things, the prices of gas purchases from October 2020 to the end of June 2021. As part of the understandings, the price of gas purchased by the company from the partnerships was reduced.
It was also stated by the partnership in the Tamar reservoir that they had reached agreements that allow them to market and sell gas from the reservoir individually. This will allow the IEC to negotiate separately to lower the price. Reducing the price of gas will allow the IEC to reduce the cost to the consumer, as it did in early 2021.
The negotiations were conducted by the company’s senior management, headed by CEO Ofer Bloch, CFO Avi Deutschman, Attorney General Yael Nevo and VP of Production and Energy Ram Erlichman. External legal assistance is provided at the law firm Q. Horowitz & Co.
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According to Yiftach Ron-Tal, Chairman of the IEC Board of Directors: “The IEC continues its determined campaign to lower gas prices and reduce production costs. The opening of agreements with gas companies is an extraordinary achievement in the fight to lower the cost of living. IEC continues to lead the gas economy to competition “And it will already now begin separate negotiations between the owners of the reservoir and achieve a further reduction of tens of percent in price.”