Akin Gump Advises Palestine Power Generation Company on Groundbreaking $1.2 Billion Gas Supply Deal
(London, UK) – Akin Gump is representing Palestine Power Generation Company (PPGC) as purchaser in a groundbreaking transaction to buy natural gas from the giant Leviathan gas field offshore Israel, to fuel a power plant that PPGC is developing in Jenin in the northern part of the West Bank of Palestine. The sellers include both U.S. and Israeli companies, including Noble Energy, the Delek Group and Ratio Oil.
The transaction was signed on Sunday, January 5, 2014, in Jerusalem and is a major step towards the completion of an historic project with many significant geopolitical implications. The transaction is noteworthy because it is the first contract to export gas from offshore Israel to a company in Palestine. As such, the transaction was hailed as a significant sign of cooperation between Israel and Palestine and an important step in the ongoing peace process. The transaction is also important because it is the first gas contract to supply gas from the Leviathan field, which is Israel’s largest natural gas reservoir.
PPGC will buy approximately 4.75 billion cubic meters of gas for a period of 20 years. It is estimated that the price and quantity of natural gas to be purchased during the contract period is approximately $1.2 billion.
PPGC was established for the purpose of developing, constructing, owning and operating power plants to generate electricity for the West Bank of Palestine. The development and financing of PPGC’s approximately $300 million, 200MW power plant in Jenin is ongoing.
Akin Gump’s London-based team advising PPGC in connection with the gas supply deal as well as in connection with the ongoing development of the power plant includes London-based partners John LaMaster and Marc Hammerson and associate Caroline-Lucy Moran. James-Antony Platania of Consolidated Contractors Company (an indirect shareholder in PPGC) acted as in-house counsel for PPGC, and Malcolm Groom acted as a specialist gas consultant.
Founded in 1945, Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 850 attorneys in offices throughout the United States, Europe, Asia and the Middle East.