Share

Netanyahu faces crisis over Israel gas monopoly

Jerusalem - Israeli Prime Minister Benjamin Netanyahu on Monday faced his first major coalition crisis since his re-election, with ministers withholding support for government plans for developing Israel's natural gas fields.

At least three cabinet members cited conflicts of interest - personal or business-related - in seeking to be recused from a parliament vote later in the day meant to pave the way for a gas deal that would circumvent anti-trust regulation.

Netanyahu, who has a one-seat majority in the 120-member parliament, held emergency meetings to try and resolve the impasse.

Under the proposed deal, Texas-based Noble Energy and Israel's Delek Group would keep ownership of the massive offshore Leviathan field while stakes in smaller projects are put up for sale, industry officials said.

The agreement has become the focus of national debate with critics saying Netanyahu was putting big oil profits above what could be a windfall for the state and citizens hoping to lower energy prices.

Netanyahu says the more pressing issue is to get the gas out of the ground and fast-track the development of Israel's natural resources.

Development of Leviathan, which could supply billions of dollars worth of gas to Egypt and Jordan, has been held up for a few years by regulatory issues. Israel's anti-trust authority objects to the monopoly arrangement.

Facing possible defeat in parliament, Netanyahu could declare the vote a ballot of confidence in his government, political analysts said. That could effectively force recalcitrant ministers to back the measure.

Netanyahu's original plan to push the deal through swiftly last week, was derailed by his economy minister, Aryeh Deri of the ultra-Orthodox Shas party, who declined to sign off on the agreement. He cited monopoly concerns.

That in turn forced Netanyahu to go to parliament in order to give the government the required authorisation to finalise the deal with Noble and Delek, which currently control a number of gas fields off Israel's shore.

The US State Department, hailing prospective regional benefits, has voiced support for moving ahead with the deals between Noble Energy, Jordan and Egypt. US Secretary of State John Kerry has discussed the matter with Netanyahu in the past.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
-0.3%
Rand - Pound
23.97
-0.3%
Rand - Euro
20.48
-0.1%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.4%
Platinum
911.60
+1.6%
Palladium
1,012.97
+1.1%
Gold
2,214.54
+0.9%
Silver
24.90
+1.0%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders