Israel’s Energy Minister Eli Cohen in March threatened that “if the gas partnerships or [US major] Chevron think of raising prices for the Israeli market, there will be consequences to this.” This came as a dispute between the finance and energy ministries on gas export quotas was played out in public with the former suggesting that Chevron could be forced out of one of its two key Israel assets (MEES, 28 March).
Current market dynamics could force Mr Cohen to make a potentially difficult decision. Talks have stalled between state utility IEC and key partners in the Chevron-operated 13.7tcf Tamar gas field over the terms of the price re-opener clause. In addition, the sides have been negotiating an extension of the current contract beyond 2030. This could result in a potential price hike for domestic users. (CONTINUED - 1312 WORDS)
