JERUSALEM, Nov. 23 (Xinhua) -- The Chinese-Israeli company MRC Alon Tavor Power has signed a 15-year natural gas supply agreement in Israel with Britain-based oil and gas producer Energean.
According to the long-term agreement, Energean will supply about 500 million cubic meters of natural gas per year for the Alon Tavor gas-fired power plant located in northern Israel for 15 years, with an accumulated natural gas value of more than 1 billion U.S. dollars.
Supply of the natural gas for the Alon Tavor power plant will first be drilled from the Israeli offshore Karish gasfield owned and operated by Energean.
The Chinese-Israeli MRC consortium acquired the Alon Tavor plant from Israel Electric Corporation in July for around 530 million dollars. The consortium consists of China Harbor Engineering Company (CHEC) and two Israeli companies, Mivtach Shamir Holdings and Rapac Energy, with CHEC holding 34.5 percent of shares.
To supply natural gas to the Alon Tavor power plant is of strategic importance for Israel's energy and electricity market, said Energean's CEO Mathios Rigas, adding the agreement signed represents a first step toward a long-term collaboration.
The combination of the gas reform and the historic reform of the Israel Electric Corporation is bearing its fruits, breaking the monopoly, creating competition, reducing air population and providing economic well-being for Israel and its citizens, said Israeli Energy Minister Yuval Steinitz on Twitter.
The Alon Tavor power plant is the first privatized one in Israel in the process of the country's reforms of privatizing its power plants.