Netanyahu to testify in High Court on controversial gas deal

Government representatives and opposition leaders clashed Wednesday during a hearing in the High Court over the legality of a controversial deal on Israel’s newly found gas fields in the Mediterranean.

In an unprecedented move, the state requested Prime Minister Benjamin Netanyahu be allowed to personally present a defense of the agreement after the court ordered a substantive debate over the policy.

The court said Netanyahu would need to present a written statement within two days, and would be allowed to testify in a hearing soon after. Netanyahu was initially reported to be heading to the court in person on Wednesday to testify.

After months of intense debate and numerous bureaucratic and legislative hurdles, Netanyahu signed the controversial gas outline on December 17 but still faces opposition from opposition lawmakers and activists who claim the terms of the deal create a monopoly in the gas market and will lead to higher prices for Israeli consumers.

Five separate petitions have been filed with the High Court urging it to throw out the deal over a range of legal issues.

Netanyahu was able to sign the deal after invoking a never-before-used clause to override an antitrust ruling against the deal by declaring it an issue of national security.

Netanyahu was forced to pursue the use of “Clause 52” after then-antitrust commissioner David Gilo ruled that the Israeli-American Delek-Noble conglomerate that is developing the Leviathan gas field may constitute a monopoly, sparking a vociferous national debate on the terms given to the energy companies.

Former economy minister Aryeh Deri, not wanting to pay a political price for the gas deal but also not wanting to stand in its way, resigned his post last month, allowing Netanyahu to take over the ministry and sign the deal himself.

Represented Wednesday by Zionist Union MKs Shelly Yachimovich and Eitan Cabel and Meretz party chair Zehava Galon, the petitioners listed a catalog of legal flaws in the management of the deal, as well as “extreme lack of reason” and “disproportionality.” They claimed the government neglected basic issues in the natural gas market such as the problems of monopolistic pricing and lack of energy security, and is now “trying to sell an illusion in the guise of a deal” that will not only not solve the problems but will perpetuate them.

Israel has been trying to extract offshore gas since the discovery of the Tamar and Leviathan fields in 2009 and 2010. Production has begun in Tamar, but the far larger Leviathan has been hit by a series of delays.

The size of the Leviathan field is estimated at 18.9 trillion cubic feet (535 billion cubic meters, or bcm) of natural gas, along with 34.1 million barrels of condensate.

Noble and Delek also control the Tamar field, which holds 250 bcm of natural gas, and lies 80 kilometers (40 nautical miles) west of the Israeli port of Haifa.

The discoveries were major boosts to Israel’s efforts toward energy independence.

It also intends to export gas from Leviathan to other countries in the region, which could grant Israel strategic leverage. Greece and Cyprus have expressed interest in cooperating with Israel on a gas pipeline.

High Court approval of the deal would allow the consortium to move forward on contracts for gas sales, which could unlock crucial financing needed to develop Leviathan.

AFP contributed to this report.