Israeli parliament approves controversial gas deal

The Israeli parliament approved on Monday a contentious framework agreement to develop the country's offshore natural gas fields, although the deal still cannot move forward due to further regulatory hurdle.

The deal, approved by a narrow 59-51 vote, will allow a consortium led by Texas-based Noble Energy and Israel-based Delek Group to develop Israel's largest gas fields, Leviathan, in addition to two smaller fields.

But before the companies could move forward with the agreement, which was opposed by the antitrust commissioner, the parliament needs to authorize the transfer of the antitrust powers from the Ministry of Economy to the cabinet.

Israeli Prime Minister Benjamin Netanyahu, who has been struggling to push forward the agreement, was still missing on Monday one vote to gain the necessary support for the move. He decided to postpone this vote for an unspecified date.

Netanyahu hailed the vote as a "great day for the State of Israel," noting the development of the newly-found gas fields will bring hundreds of billions of shekels to the Israeli economy.

"There is one more hurdle to overcome but when I want something, I get it," he said in a statement released by his office.

The agreement has encountered considerable opposition, including from the former Antitrust Commissioner David Gilo, who classified the gas partnership as a "cartel" which "undermines competition."

Lawmakers, social activists and environmentalists said the deal "robs" the public of its natural resources by enabling Noble and Delek to charge higher prices from consumers and pay the state low revenues.

Noble's efforts to get the parliament approve the deal have intensified after the Italian energy group Eni announced last week a "super giant" gas discovery offshore Egypt.

On Thursday, Noble hinted at possible legal actions against Israel, should the parliament won't approve the gas plan shortly.

"It is imperative that the government of Israel follow through on this approved framework without further delay," the company said in a statement, adding it is "fully prepared, and is well positioned, to take the actions necessary to protect the value of its assets." Endit