Long-Term Gas Supply Deal Cancellation Affects Dalia Energy Projects
What happened
NewMed Energy LP, which holds 45% of the Leviathan natural gas reservoir, has informed the Tel Aviv Stock Exchange of the cancellation of a $6.7 billion long-term gas supply deal. This deal was intended to supply gas to the new power plants of Dalia Energy Companies, namely Dalia 2 and Avshal. The contract term was set for 2030 to 2050, though the price would be reopened for negotiation in 2041. The official reason cited for the cancellation is the failure to meet preconditions regarding finance and approval from the Competition Authority.
From globes.co.il
Why it matters
The cancellation impacts the core gas supply needed for Dalia Energy Companies' planned power stations. For Leviathan, the long-term commitment represented a significant future revenue stream. Dalia Energy Companies stated it was surprised by the announcement and refuses to accept the cancellation.
From globes.co.il
Who's involved
- Dalia Energy CompaniesThe company whose planned power stations relied on the cancelled gas supply contract.
- LeviathanThe company whose reservoir was central to the cancelled long-term gas supply agreement.
- Tel Aviv Stock ExchangeThe stock exchange notified of the major market-moving announcement regarding the deal.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Dalia Energy CompaniesSpeculative
Dalia Energy Companies might face challenges regarding the core gas supply for its planned power stations.
- LeviathanSpeculative
Leviathan could see its future revenue stream impacted by the termination of the long-term gas supply contract.
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The entities involved
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Leviathan
company
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