Israeli Supreme Court Rejects Netanyahu's Natural Gas Deal

Jerusalem, 27 March, 2016 (TPS) -- Jerusalem (TPS) – The Supreme Court of Israel ruled in favor of the nullification of the natural gas outline between the Israeli government and the Noble Energy and Delek corporations on Sunday, March 27.

The outline agreement that was reached in August, 2015 had established guidelines for the ownership and distribution rights of the two energy giants over Israel’s recently discovered natural gas fields off the Mediterranean Coast. However, four different appeals were presented to the Supreme Court against the arrangement.

The natural gas outline became controversial after Antitrust Commissioner David Gilo refused to authorize it and resigned from his position in protest. Opponents of the outline deal argued that it undermined competition in the energy sector and placed the control and potential profits of Israel’s immense natural gas deposits in the hands of a monopoly.  

The appeals brought into question the process in which Israel’s antitrust laws were possibly bypassed in order to facilitate the deal and the legality of some of its specific clauses, such as the Stability Clause.

The Stability Clause dictates that no legislation can be passed by any future Israeli government that would alter the current arrangement in any way for a period of ten years.

A panel of five judges, presided over by Supreme Court Deputy President Justice  Elyakim Rubinstein, decided the case following a two-month legal battle. Prime Minister Benjamin Netanyahu himself appeared before the Supreme Court in February to defend the arrangement in his capacity as the acting economy minister and the initiator of the arrangement with Noble Energy and Delek.

According to the Supreme Court ruling, “regarding the core issue of the limitations of governmental authority in a democratic regime, the Stability Clause remains as written without the appropriate authority.”

“The government does not have the authority to decide not to decide and not to act and it cannot legislate a future limitation on the legislative process,” the ruling continued. Since the entire arrangement hinges upon the Stability Clause, the ruling essentially renders the entire arrangement cancelled.

Prime Minister Netanyahu issued a statement in response to the ruling saying that “the Supreme Court ruling poses a threat to the development of Israel’s natural gas deposits. We will seek new ways to overcome the damage done to Israel’s economy by this questionable ruling.”