A PYMNTS Company

Power producers must send their gas supply contracts with Tamar partners to Antitrust Authority for approval

By  |  April 3, 2012

The Antitrust Authority has ordered power producers that have signed gas supply contracts with the Tamar partners to send the regulator their contracts for approval. The Tamar partners are Noble Energy, Delek Group, Isramco, and Alon Natural Gas Exploration. The affected producers are Israel Electric Corporation, Dalia Power Energies, and Edeltech; other companies that have contracted with the Tamar partners are Hadera Paper and Mashav Initiation and Development.

The antitrust watchdog is concerned with a “take or pay” clause in the contracts. Take or pay refers to the minimum amount of gas that a customer must purchase. The Antitrust Authority believes that if the amount is too low, the gas pipeline’s capacity will be filled by current customers and block future customers.

Full content: Globes

 

Related content: Screens in the Gas Retail Market: The Brazilian Experience (Carlos Ragazzo, CADE-Administrative Council for Economic Defense)