Energy Minister Yuval Steinitz told Bloomberg he would present a softer version of the stability clause ruled illegal.
The State of Israel will shortly present Noble Energy and Delek Group Ltd. (TASE: DLEKG) an alternative to the stability clause in the gas framework agreement with them that was struck down by the High Court of Justice, Minister of National Infrastructures, Energy and Water Resources Yuval Steinitz told Bloomberg last week. The controversial clause in the agreement promised that the government would introduce no material regulatory changes for ten years. Steinitz said that the redrafted clause would enable the Leviathan gas reservoir to be developed, and would pave the way to gas export agreements with Egypt and Turkey. Steinitz refused to be specific about the content of the new clause.
“We will probably see some kind of softer stability commitment, but still significant. I want to give them something which is softer but still substantial, which according to our experts has a reasonable chance not to be rejected by the court once again,” Steinitz told Bloomberg. Steinitz said that the government sought a solution "in a matter of weeks, no more than a couple of months."
On the possibility of a gas supply agreement with Turkey, Steinitz said Israel was close to renewing diplomatic ties with Turkey, and noted that Turkey was a huge market for gas, with demand likely to double within seven years. "They need our gas, and we need this market. I think we will reach a resolution with Turkey in weeks -- but even if it takes months, gas projects take years,” Steinitz said.
Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2016 - © Copyright of Globes Publisher Itonut (1983) Ltd. 2016
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