Palestinian utility set to drop Leviathan gas deal

Palestine Power Generation Company (PPGC) has served notice that it will cancel an agreement with the Noble Energy-led partnership for gas supplies from the Leviathan field offshore Israel.

Mar 11th, 2015

Offshore staff

TEL AVIV, Israel --Palestine Power Generation Company (PPGC) has served notice that it will cancel an agreement with the Noble Energy-led partnership for gas supplies from the Leviathan field offshore Israel.

According toDelek Group, which has two subsidiary companies in the partnership, PPGC had agreed to contract up to 4.75 bcm of gas over 20 years for a plannednew power station near Jenin.

The cancellation was due to a combination of factors, including non-receipt of the approval of the Antitrust Authority, the delay in approving the development plan of the Leviathan project, and other regulatory approvals required by law, as set out in the Supply Agreement.

Unless the partners receive approval from the Antitrust Authority, the cancellation will become effective within 30 days.

3/11/2015

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