Wednesday, September 3, 2014

Israel signs $15 billion gas deal with Jordan

On Wednesday, Israel signed a memorandum of understanding with Jordan, promising to supply the nation with $15 billion dollars worth of natural gas from its Leviathan fields over the next 15 years.

The Leviathan fields, discovered in 2010 are estimated to hold 16 trillion cubic feet of gas, enough to meet Israel's gas demands for the next 100 years. This agreement will make Israel Jordans’ main supplier of natural gas. Israel’s Energy and Water Minister Silvan Shalom hailed the agreement as“a historic act that will strengthen the economic and diplomatic ties between Israel and Jordan.”

The Palestine Power Generation Company, which will purchase some $1.2 billion-worth of gas over the next 20 years has already committed to becoming the first buyer of natural gas from Israel’s Leviathan field.
The discovery of the Leviathan field and the smaller Tamar field leave Israel poised to become a major world player in the natural gas market.

Hows that boycott going, btw?



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