The Israel Union for Environmental Defense, the country's leading environmentalist group, Friday urged the Anti Trust Commission to declare the Tamar consortium a gas supply monopoly
The IEUD said in a statement that the agreement announced last week between the Tamar consortium and the Israel Electric Corp on a long-term gas supply contract was anti competitive. The group said the price was 13% higher than what was agreed in a memorandum of understanding signed two years ago.
IEC and the Tamar consortium were unavailable for comment.
The 15-year agreement approved on December 15 by the IEC board of directors involves the supply of 3 billion cubic meters of gas a year for 15 years by the Tamar consortium (Noble Energy Inc, Delek Drilling, Avner Oil and Gas, Isramco and Alon Gas Exploration). The volume would be raised to 5 Bcm once a second pipeline and receiving station are in place.
The IEUD said it feared the existing structure of the local gas market would delay the introduction of gas into the transport and industrial sectors and lead to the continued use of fuel oil and gasoil.
The group said the Tamar consortium should be declared a monopoly in light of the cut off of supplies from Egypt and the faster-than-expected depletion of the gas from the Mary B well, currently the sole supplier of gas to the local market.
The Anti Trust Commission has to give its approval to the agreement before the state owned utility and the Tamar consortium can actually sign a binding agreement. Earlier this week sources at the Anti Trust Commission said they had reservations about the agreement specifically regarding a clause that would grant the IEC the lowest possible price. The sources added that the clause could stifle competition.
