Under the terms of the agreement, Tamar will supply the parties with an estimated 2.2 BCM natural gas for a period of up to 18 years. The deal's value may reach as much as $5 billion, including an option for future purchases.
The cost of each unit (MMbtu) is expected to range from $5.6 to $5.8.
It appears that Tamar will sign three different agreements with the companies: Israel Refineries, which is preparing to launch its new refinery, will be Tamar's first client, with a short-term seven to eight-year agreement; second in line will be OPC, which will begin receiving gas in 2014 for its new 440 mega-watt power plant. OPC's agreement will be have the longest term of the three and last 16-18 years.
The third agreement, with ICL, is in its final stages of negotiation and will set the terms for the supply of gas to the company's 250 megawatt power station which will be completed in three years time.
The Tamar partnership includes Delek Drilling, Isramco Oil and Gas Production, Dor Gas and Noble Energy.
This report was originally published in Hebrew by Calcalist