Israel Electric Corporation (IEC) can continue to use crude oil, instead of natural gas, at its Reading power plant until January 5, 2006. IEC obtained the extension at a meeting at the Prime Minister’s Office late last week. IEC had asked for a three-month extension.
Industry sources believe that IEC can obtain a further three-week extension if needed. In any event, the Reading power plant will not be shut down, and everyone involved wants it switch to natural gas as quickly as possible.
The Ministry of the Environment recommended that Prime Minister Ariel Sharon, who holds the environment portfolio, extend Reading’s permit it use crude oil until the end of January, so that the Israel Natural Gas Lines Company Ltd. can carry out safety tests on the undersea section of the pipeline.
Ministry of the Environment director general Dr. Miki Haran said she would closely monitor progress on certifying the undersea section of the pipeline.
IEC was supposed to begin using natural gas at the Reading power plant on December 31, 2005. The Natural Gas Lines Company said it would not permit the flow of natural gas to the power plant, because of concerns about quality and durability of the undersea section of the pipeline between Ashdod and Reading. IEC built the pipeline.
Published by Globes [online], Israel business news - www.globes.co.il - on January 2, 2006