Tel Aviv — The Tamar Consortium has been granted the first gas export license by the Israeli government. The approval is for the export of gas to Jordan’s Arab Potash Co. (APC) and Arab Bromine Co. The relatively small contract calls for the supply of 1.8 billion cubic meters of gas over 15 years. The deal is valued at $500-$700 million. APC and its sister company, Jordan Bromine, are interested in purchasing the gas to reduce their energy costs. The original agreement with Tamar (Noble Energy Inc., Delek Drilling, Avner Oil and Gas, Isramco, and Alon Gas Exploration) was signed in February 2014. Gas supplies are expected to commence in 2016 after a transmission line is built to Jordan. In September, Israel’s Gas Council decided that gas exporters will cover the cost of transmission pipelines used for exports. This will require the companies to participate in the cost of constructing a pipeline to Jordan and the Palestinian Authority. At the time, the Gas Council estimated the cost of building a transmission line to Jordan and the Palestinian Authority at $80 million.
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