M-RCBG Associate Working Paper No. 102

Facing a Gas Monopoly: The Power Game

Orit Farkash-Hacohen



In 2015, the Israeli government approved a controversial deal with a US-Israeli partnership that controlled virtually all the natural gas supply in Israel--at great cost to the Israeli public. Central to the controversy was the political decision not to interfere with a provision--in the most significant gas agreement to the Israeli public to date--that sets artificially high gas prices and represents excess costs of billions of shekels over the 17-year lifetime of the deal.

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