Israel Chemicals Signs Long-Term Gas Purchase Agreement With Yam Tethys
March 26, 2008
Tel Aviv-based Israel Chemicals has signed an agreement with Yam Tethys Partners defining the terms under which it will purchase approximately two billion cubic meters of natural gas to be supplied through 2015.
This quantity is based upon Israel Chemicals’s (ICL) projected needs through 2015, including the manufacturing capacity expansion called for in its multi-year strategic plan.
The total value of the deal is estimated to range from $260 million to $330 million, depending primarily upon the price of fuel oil and the exact quantity and rate of ICL’s natural gas consumption.
The conversion of most of ICL’s Israel operations to natural gas is expected to give rise to cost savings of more than $100 million per year.