Delek Signs $5 Billion Gas Deal With Dalia Power

On Sunday evening, Delek and its partners in Israel’s Tamar gas field signed a $5 billion gas supply contract with Dalia Power Energies Ltd. Under the contract, the gas field will supply Dalia Power with 1.38 billion cubic meters of gas for 17 years.

The Tamar partnership is also expected to sign additional supply contracts in the upcoming weeks with refineries in Haifa and Ashdod.

Dalia, building what will be the largest private power station in Israel, is slated to begin receiving gas in the second half of 2014. Israel views the entry of private power producers as the remedy to a market monopolized by the state-owned Israel Electric Corp.