IEC Transmission Segment Development Plan 2023-2027
Natural Gas Overview
Firm gas supply from Tamar Field
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A long term Gas Sale and Purchase Agreement (GSPA) was signed on March 2012.
On January 24, 2022, an amendment to the agreement was signed with all Tamar partners, following the
contractual first price reopening date.
חברת החשמל
Israel Electric
Reduction of the contractual gas price applicable for the Take or Pay (TOP) quantity in a rate that is a few percent higher
than the maximum rate of first price re-opener in the GSPA Agreement.
According to the GSPA, the gas price for the minimum charged amount is linked to the US CPI. Few restrictions for the US
CPI indexation have been set in the amendment.
■ The parties' entitlement was maintained for another re-opener date for the minimum amount (in the range of up to 10%
supplement or reduction) on December 31, 2024 (instead of the re-opener date set in the GSPA agreement - July 1,
2024).
■ The agreement term was extended for another 2.5 years until December 31, 2030.
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Commitment to purchase additional 16 BCM according to the Company's actual operational needs.
■ The company will undertake to order a minimum daily quantity on an operational basis during the agreement period.
Price of gas for the operational quantity and for any additional quantity up to the maximal daily quantity but in excess of
the minimal annual quantity (Take or Pay), will be slightly lower than $ 4 per MMBTU without indexation.
■ The amendment to the Tamar agreement entered into force on July 22, 2022 after the fulfillment of all the precedent
conditions. The accounting between the parties will be executed retroactively as from July 1, 2021.
Source: IEC 's Financial Statements for for 2022FY.
Investor Relations
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