Petitions to block gas deal have no legal basis according to Israeli Government

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The Israeli government is under fire for the controversial gas deal inked with U.S. energy consortiums. In response, the government said that the four petitions brought before the High Court have no legal basis.

Government attorney for the state said in Haaretz, "Reading four petitions shows that every one of them is lacking a factual, economic and legal reforms, rather their common practical purpose a one and simple - to prevent the government from advancing its policies in the Israeli natural gas sector sectors."

Petitioners are seeking to block the gas framework deal between the Israeli government and Texas-based Delek and Noble energy. Under the proposed deal, Delek and Noble energy will have rights to the largest gas reserve found in Israel, the Leviathan field.

The court is due to begin hearings on the petitions filed by Movement for Quality Government in Israel, The Academic Center for Law and Business and the Zionist Union and Meretz. These groups claim that Prime Minister Benjamin Netanyahu exceeded his authority in signing the deal.

Petitioners challenge Netanyahu's decision to override the antitrust law on national security grounds to create a monopolistic market for the U.S. energy firms. The passage of the deal resulted in the resignation of former antitrust commissioner David Gilo and former economic minister Aryeh Deri, whose resignation enabled Netanyahu to become acting economy minister and ensure the passing of the deal, Times of Israel reported.

Economist Manuel Trajtenberg said that the committee's recommendation fell on deaf ears, The Jerusalem Post reported. In defense, Netanyahu said that the framework boost Israel's economy but critics accuse the government of "marketing an illusion" that favor the companies instead of Israeli consumers.

Likewise, petitioners are also questioning the "stability clause" in the agreement. Under the stability clause, gas companies will be immune form regulatory changes for as long as 15 years.

For now, Tamar gas field is Israel's only source of natural gas. Delek and Noble have been extracting gas off the Israeli coast since 2013.

Tags
Israel leviathan, Israel gas deal, Delek and Noble, Benjamin Netanyahu, Israel gas pipeline
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