Jack Smith, Adam Dozetas, and Tal Cohen represented Dalia Energy Companies Ltd., Israel’s largest private electricity provider, in a long-term Gas Sales and Purchase Agreement (GSPA) with the partners in the Leviathan reservoir (Ratio and NewMed).
Valued at an estimated 6.7 billion US dollars, this is a highly complex transaction for the consumption of natural gas by two new H-Class power stations under construction in Ashdod and Zafit, each with a planned capacity of approximately 850 MW, as well as for the existing power station in Eshkol.
The agreement is for a 20-year period and includes a minimum purchase commitment. The gas supply is set to increase from 2035, in preparation for the new stations’ operation in 2028. The transaction also involved significant competition law aspects and is a key step in expanding competition in Israel’s electricity market.
