Environment minister shuts down Reading power station

“I will not allow the start of gas usage to be postponed yet again”

Public Security and Environment Minister Gideon Ezra announced yesterday that he would not agree to a further postponement of the introduction of natural gas at the Reading Power station in Tel Aviv. The decision, if implemented, will effectively shut down the power station as of today, until such time as it is connected to the natural gas supply network.

The station currently uses light residual fuel, which costs more and causes more pollution than natural gas. The move to gas fired turbines has been delayed amidst a row over safety issues regarding the connection of the gas pipeline to the station. The move had been set to get underway on January 1 but was delayed following agreement by Ezra to continue to allow use of light residual fuel in February.

The notice to the Israel Electric Corp. (IEC) was issued by way of a personal directive to the company president and CEO Jacob Razon. In his letter to the CEO Ezra said any request to extend the deadline for the plant’s conversion would be considered only on exceptional mitigating grounds, such as the need to ensure power supply during a state of emergency.

Ezra stated that the plans to connect the plant to the gas supply network were not proceeding according to schedule and no timetable had been set for the completion of the project. The technical specifications had not been approved; contractual engagements with related service contractors were still not in place; and the relevant regulatory approvals such as the business license, emergency procedural guidelines, toxic materials permit and clearance from the Airports Authority had not yet been obtained.

Ezra also said that the IEC had failed to reach agreement with Israel Natural Gas Lines Company Ltd. regarding the process and timeline for installation of pipeline for the channeling of gas to the Reading station.

He added that as the power station was in any case operating at low capacity, providing electricity during peak consumption periods only, alternatives could be found. The months of March to May were typically a period of low demand for power and therefore the risk of an overload would be reduced.

Ezra made his announcement in response to a petition filed by the Israel Union for Environmental Defense against the continuing use of light residual fuel at the Reading Power Station.

Published by Globes [online], Israel business news - www.globes.co.il - on February 28, 2006

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