Knesset finance panel to debate Chevron decision to stop sales to IEC

The Knesset Finance Committee will hold an emergency session on Wednesday to debate the recent decision by energy giant Chevron to stop selling gas from the Tamar field to the Israel Electric Corporation

( IEC) unless it agrees to pay $ 6.3 per heat- unit rather than $ 4. Chevron denied that it has halted the sale of gas to the IEC.

The committee has invited representatives of the Texasbased energy firm, Delek, the IEC, the Energy Ministry and the Israel Competition Authority ( ICA) to the session to present their views.

Chevron said it continued to “provide for Israel’s energy needs” and argued that “we continue to build relationships with all of our stakeholders.”

Last week, Noble Energy, the operator of the Tamar offshore gas field, suspended the supply of gas to the IEC following the completion of its acquisition by Chevron.

Noble Energy and Delek control 85% of the Leviathan gas field and 47% of Tamar.

This means that when the IEC is forced to buy gas from Leviathan to meet demand, the two companies make more money.

The IEC claimed in a letter on Wednesday to the ICA that Noble Energy was acting like “a bully” and expressed hope that the refusal to provide it with gas “isn’t an indication of the [ new] philosophy of doing business that came here with Chevron.”

However, vice attorney- general Meir Levin ruled that, based on existing agreements, Noble does have the right of veto until the end of 2021 and this ties the hands of the ICA to step in at this stage, according to The Marker.

Chevron and the IEC have agreed to end their public feud and settle financial claims and counter claims at a later date. Chevron is currently pumping gas from Tamar to the IEC.