Sources inform ''Globes'' that the Ministry of Finance opposes building another natural gas pipeline to the north. The pipeline would cost $100 million, and is intended as a back-up in case of a breakdown in the undersea gas pipeline built by Israel Electric Corporation (IEC) from Ashdod to Dor. The new line would run from the Gezer power station in Ramle, through central Israel to IEC’s Hagit power station near Yokne’am.
In a recent inter-ministerial meeting, Ministry of Finance representatives said that projected demand for natural gas did not justify construction of a second pipeline, and it could be postponed by several years. Israel Natural Gas Lines Company Ltd. presented a plan for building the pipeline within three years.
The Ministry of National Infrastructures is worried that a delay in building the back-up pipeline will result in gas deliveries in the north being solely dependent on the undersea pipeline. 18 months ago, the pipeline was damaged by a ship near Hadera, and it is considered more vulnerable to breakdowns than an overland pipeline. In addition, any breakdown is liable to force the shutting down of the undersea pipeline for prolonged period.
A senior energy official said, “Construction of a pipeline in not only worthwhile as a back-up for gas deliveries to the north, but also because it will enable factories and large consumers in the center to obtain natural gas.” He added that the Ministry of Finance’s opposition was incomprehensible, since Natural Gas Lines Company would finance the pipeline’s construction on its own.
The Ministry of Finance rejects these arguments. It said in response, “Talks are at the preliminary stage. The ministry has not yet formulated its position, so the basis for the claims is unclear.”
The Ministry of National Infrastructures said in response, “The pipeline is an inseparable part of the natural gas network. The ministry is trying to bridge the disagreements in order to bring about construction of the pipeline along the planned route.”
Published by Globes [online], Israel business news - www.globes.co.il - on June 14, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007