IEC signs huge gas supply MoU with Tamar partners

Israel Electricity Company (IEC), which even after energy repair, the largest electricity producer in the country, has signed a memorandum of understanding with some Tamar partners to provide natural gas with power stations over the next ten years. IEC said that the agreements in the Memorandum of Understanding “reflect the savings expected to reach about 800 million and move to 1 billion New, compared to the current Tamar agreement for the current alternatives.” However, this is not yet a final agreement, but only a non -binding understanding memorandum, and changes may occur before signing the final agreement with the TAMAR gas field partners.

Over the next decade, IEC will buy gas from Tamar for $ 8.2 billion – between 2 and 3 billion cubic meters (BCM) every year. The agreement was signed with some partners only, according to the principle of separate sales, designed to create competition in the gas market, although the largest tamar and Leviathan are operated by American Chevron. The IEC’s understanding note was signed with most of Tamar partners, with the exception of Tamar Petroleum and investments by SOCAR (National Oil Company in Azerbaijan). But these partners in negotiations, according to the IEC announcement, will be able to join the agreements within 30 days.

Due to the wide IEC production, its gas agreement is the largest gas agreement in Israel, and it is also part of making the Tamar tank aimed at local production (72 % for the local economy). This is unlike the Leviathan tank, which is located towards export (81 % exports).

It was published by Globes, Israel Business News – En.globes.co.il – on July 27, 2025.

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