$6.7 Billion Leviathan Deal Canceled Amid Dispute Over Agreement
NewMed Energy LP and its partner Ratio Energies LP have canceled their $6.7 billion deal to supply gas to Dalia Energy's new power plants, sparking a dispute over the cancellation.
The deal was meant to provide long-term gas supplies for two new power plants: Dalia 2, an 850-megawatt plant planned for Tel Tzafit, and the Avshal power station in Ashdod, also with an 850-megawatt capacity. The gas would be sourced from the Leviathan natural gas reservoir.
The official reason for the cancellation is that Dalia Energy failed to meet the preconditions for the deal, including approval from the Competition Authority and finance clearance.
Dalia Energy rejects the cancellation, stating it was surprised by the announcement and claiming the agreement was not terminated in accordance with its terms. The company says discussions are ongoing with the Competition Authority regarding an exemption application submitted by the sellers.