The deferment means companies such as Phoenicia America-Israel, Sano-Bruno Enterprises and Barzelan will continue production in Israel.
The Ministry of National Infrastructures has deferred until 2007 implementing a binding standard reducing the level of olefins in liquid petroleum gas (LPG). The deferment means companies such as Phoenicia America-Israel Ltd.(Flat Glass), Sano-Bruno Enterprises Ltd. (TASE:SANO1 ;SANO5), and Barzelan Ltd. will continue production in Israel. These companies’ production is based on direct LPG, the supply of which would be halted if the new standard were to come into effect in October as scheduled.
Last week, the Knesset Economics Committee approved postponing the new standard. Under the original plan, the new LPG standard reducing olefins content to 30% from 40% was due to come into effect on October 15. This would have required Oil Refineries Ltd. to cease all direct LPG production. Many industrial enterprises, including Phoenicia America-Israel, Sano, and Barzelan, asked the Ministry of National Infrastructures to review the introduction of the standard, saying that the halt in direct LPG supplies would force them to move their factories overseas.
Published by Globes [online], Israel business news - www.globes.co.il - on September 26, 2005