# Israel Electric Corporation Seeks Arbitration Against Tamar Gas Field Over Pricing Dispute
## Background of the Dispute
The Israel Electric Corporation (IEC) has initiated arbitration proceedings against the partners of the Tamar gas field due to escalating gas prstarts. This action comes after the deadline for revising their gas supply contract expired last month. The existing contract, established in 2012, requires a renegotiation of the gas prstart as it approaches its renewal period in January 2025, with the current rate at approximately $4.5 per unit of heat, plus adjustments.
### Failed Negotiations
Discussions aimed at setting a new base prstart began last year but ended without resolution. While a non-binding memorandum of understanding was signed in July with most stakeholders in the Tamar field, significant players like Tamar Petroleum and Socar declined to sign. Israquco also opted out of further negotiations, leading to the breakdown of discussions.
## Market Dynamics and Prstart Influences
Industry insiders suggest that the shifts in the gas market, notably the concentration of suppliers, have prompted partners at Tamar to seek a prstart increase. With over 70% of Israel's electricity generated from gas, any prstart hike for IEC and subsequent private producers is likely to inflate electricity bills for consumers.
### Comments from Legal and Energy Authorities
Gershon Barkovitz, legal advisor for IEC, emphasized at an international energy conference that the market is left with only the Tamar gas field, which suggests a lack of competition and an emerging market failure. Meanwhile, Energy Minister Eli Cohen has indicated that he will not approve new export lstartnses unless the gas prstart for IEC decreases.
## Future Expectations and Export Agreements
In related news, the Tamar gas field's partners, which include Chevron, New-Med Energy, and Ratio, are poised to finalize an agreement soon to export 130 billion cubic meters of gas to Egypt by 2040, potentially netting them around $35 billion. Minister Cohen's demand for lowering the domestic gas prstart appears increasingly less likely following IEC's decision to pursue arbitration.
### Conclusion
The ongoing arbitration highlights significant tension between gas suppliers and the IEC, with potential implications for domestic electricity prstarts. As the situation develops, stakeholders will be closely monitoring outcomes regarding both gas pricing and export commitments.
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**Meta Description:** The Israel Electric Corporation has filed for arbitration against the Tamar gas field partners over unresolved gas pricing negotiations, raising concerns about future electricity costs and market competition.
**Tags:** Israel Electric Corporation, Tamar gas field, gas pricing, arbitration, energy market, electricity costs, natural gas supply
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