Shalom Life | July 01, 2014

Israel and Jordan Sign Historic $15 Billion Gas Deal

The fifteen-year agreement will make Israel the region’s primary supplier

By: Daniel Koren

Published: September 3rd, 2014 in Business » World

Israel and Jordan Sign Historic $15 Billion Gas Deal

Israel and Jordan have signed a historic $15 billion gas deal, which will see the Israeli state becoming the region’s primary supplier of the natural export.

Israel signed the memorandum of understanding Wednesday, detailing that the nation will supply the Hashemite Kingdom with $15 billion worth of natural gas from its Leviathan energy field, over the course of the next fifteen years. Israel discovered the Leviathan deposit in 2010 130 kms west of Haifa. It contains, roughly, 16 – 18 trillion cubic feet of gas, and is expected to be operational by 2016.

The collaboration is the largest to take place between Israel and Jordan to date. Energy and Water Minister Silvan Shalom will be confirming the agreement in order to give it official approval.

Israeli financial daily Globes reports that the U.S. was also involved in the negotiations, and that US envoy Amos Hochstein was in attendance at the signing of the memorandum, as well as reps from Delek Group Ltd. and Nobel Energy Inc.

Shalom lauded the collaboration, calling it “a historic act that will strengthen the economic and diplomatic ties between Israel and Jordan.”

“At this time, Israel is becoming an energy superpower, which will supply the energy needs of its neighbors and strengthen its standing as a central source of energy supply in the region, and I welcome it,” he said in an official statement.

The deal comes months after another historic agreement in February, when Israel signed a deal with Jordan to supply $500 million worth of gas to the Hashemite Kingdom from the Tamar natural gas field. Israel discovered the Tamar deposit in 2009, which holds roughly 8.5 trillion cubic feet of natural gas.

It also arrives after Israel confirmed it would export forty percent of its offshore gas finds, having since signed a $1.2 billion deal with a Palestinian company and also a deal with an Egyptian firm.

According to Israel’s Channel 2 News, Jordan turned to Israel for natural gas because their supply from Egypt had been compromised after terrorists attacked an Egyptian gas pipeline.

Israel’s discovery of the Leviathan and Tamar gas deposits are set to make the country into a legitimate world player in the international gas industry.

The Big Lebowski Pinball Game, Out in Stores 2015 [VIDEO] The Big Lebowski Pinball Game, Out in Stores 2015 [VIDEO] TrendingToyota International Looks for Next Israeli Startup Toyota International Looks for Next Israeli Startup TrendingStartup Club: ReWalk Startup Club: ReWalk Trending
 

The Ten Best KOSHER Delis in North America

October 10, 2014 | By Caitlin Marceau
The Ten Best KOSHER Delis in North America

You asked for it, you got it. Here are our favorite strictly kosher delis across Canada and the U.S.

Read More

Chelsea Handler Was Snubbed By ‘Saturday Night Live’

October 10, 2014 | By Ashley Ramnarain
Chelsea Handler Was Snubbed By 'Saturday Night Live'

The ‘Uganda Be Kidding Me’ comedian tells HuffPost Live that ‘SNL’ never called her back after promising a hosting gig.

Read More

Stan Lee is Making Live-Action Bollywood Superhero Film

October 10, 2014 | By Ashley Ramnarain
Stan Lee is Making Live-Action Bollywood Superhero Film

Lee’s ‘Chakra the Invincible’ is being turned into a live-action feature film.

Read More

Shia LaBeouf Explains His Recent Strange Behaviour to Ellen DeGeneres

October 10, 2014 | By Ashley Ramnarain
Shia LaBeouf Explains His Recent Strange Behaviour to Ellen DeGeneres

The ‘Fury’ actor explains that he had an "existential crisis"

Read More

EXCLUSIVE: Israeli Musician David Broza Discusses Film Project ‘East Jerusalem West Jerusalem’

October 10, 2014 | By Sara Torvik
EXCLUSIVE: Israeli Musician David Broza Discusses Film Project 'East Jerusalem West Jerusalem'

The Israeli singer-songwriter is seeking donations on Indiegogo for film that will be a "bridge builder between people in Israel and Palestine"

Read More

Gwyneth Paltrow Hosts Obama Fundraiser, Calls President “Handsome”

October 10, 2014 | By Sara Torvik
Gwyneth Paltrow Hosts Obama Fundraiser, Calls President "Handsome"

A fundraiser was held at Paltrow’s home in Brentwood regarding equal pay legislation

Read More

Jessa Duggar’s Future Father-in-Law Calls Critics “Hitler’s Doppelgangers”

October 10, 2014 | By Sara Torvik
Jessa Duggar's Future Father-in-Law Calls Critics "Hitler's Doppelgangers"

The ’19 Kids and Counting’ gang continues to stir controversy

Read More

Conflict Kitchen’s Palestinian Menu Stirs Controversy

October 10, 2014 | By Caitlin Marceau
Conflict Kitchen's Palestinian Menu Stirs Controversy

The Pittsburgh restaurant is cooking up more than just lunch with their latest menu

Read More

More Headlines