Page 13 - MEOG Week 24 2021

MEOG NEWS IN BRIEF MEOG

POLICY the Leviathan partners exclusivity in sales of GAS
gas, and in so doing violating clause 22(A) of
Leviathan partners informed Appendix A in the gas agreement set out by Oman LNG signs carbon-
the Israeli government. This clause prohibits
of exclusivity violation the Leviathan partners from restricting neutral LNG deal with Shell
the purchase of natural gas from other gas
The Israel Competition Authority has sent suppliers. Attesting to its robust efforts in delivering
a letter to Delek Drilling and Noble Energy Lobby 99 VP Merav David said, “We clean and reliable energy, Oman LNG has
(now owned by Chevron) claiming that the urgently turned to the antitrust regular 10 signed a pivotal agreement with Shell to
two companies, which own the Leviathan gas months ago after we found that the Leviathan deliver the Middle East first carbon-neutral
reservoir (in partnership with Ratio) violated partners were pressuring the government to LNG cargo from Oman LNG’s world-class
the exclusivity clause in the gas agreement prevent the imports of cheap gas following the facility in Sur.
signed with the Israeli government, as part of collapse of liquefied gas prices in the world The cargo, which is expected to be
the gas sale agreement it signed with the Israel during the Covid-19 crisis.” delivered in the region, is the first carbon-
Electric Corp. (IEC) in 2019. She added, “It’s time that the regulators neutral LNG from the Middle East using
In the letter, the Israel Competition began working for the benefit of the public nature-based carbon credits to offset full
Authority is demanding that the exclusivity and resolutely to lower the price of gas and lifecycle CO2 emissions generated across
clause in the agreement be immediately with it the price of electricity and not serve the LNG value chain; from exploring and
cancelled. The importance of the letter is in their decisions the interests of the gas producing the natural gas to its end use by the
mention of the violation rather than the monopoly.” final consumer.
immediate practical aspects because the GLOBES Nature-based projects aim to protect,
agreement between the Leviathan partners transform or restore land and enable nature
and the IEC ends at the end of this month. to add oxygen and absorb CO2 emissions
The Israel Competition Authority did not say OIL from the atmosphere. Such activities lead to
what it plans to do about the matter and is the creation of ‘carbon credits’ where each
keeping all its options open. Israeli minister pushes to credit represents the avoidance or removal
The alleged violation concerns the of greenhouse gases. With more than half
18-month gas supply agreement signed in reverse UAE pipe deal of global LNG demand by 2040 expected to
June 2019 between the Leviathan partners and be from countries with net-zero emissions
the IEC. Gas began flowing from Leviathan Environmental Protection Minister Gila targets, all levers need to be pulled to
on December 31, 2019 and the agreement Gamliel wrote on Tuesday to the head of the decarbonise LNG.
expires on June 30. Under the terms of the National Security Council, Meir Ben Shabbat, Speaking on this milestone, Talal Al
agreement, according to a report in March, calling on him to cancel the oil transport deal Awfi Oman LNG’s Chairman stated, “We
the IEC paid the Leviathan partners more recently signed by the Eilat-Ashkelon Pipeline are delighted to deliver Sultanate’s first LNG
than NIS 1 billion for gas in 2020. Delek Company, along with a company owned by carbon-neutral cargo. This forward-looking
Drilling’s financial report said that through to businessmen from the UAE and Israel. step reflects Oman LNG’s commitment
31.12.2020 Leviathan supplied IEC with 2.4 Gamliel warned of the environmental to be a pioneer in decarbonisation, which
BCM of gas for $404.8 million. implications of transporting the petrol complements the Sultanate’s Vision “Oman
The Israel Competition Authority now through Israel and the increased danger of 2040”, on the environmental preservation
appears to be saying that the contract was attacks on vessels and storage facilities due to front. Oman LNG will continue its journey
preventing the IEC options for obtaining the security situation. delivering world-class business performance,
lower prices elsewhere. According to the HAARETZ safety, efficiency, and decarbonisation efforts.
Israel Competition Authority, clause 1B gave It’s great to achieve this milestone.”

Week 24 16•June•2021 www. NEWSBASE .com P13