A National Outline Plan 37 (oil and gas facilities) committee yesterday approved the Ministry of National Infrastructures' application for construction of a buoy terminal of natural gas tankers. The government and Israel Electric Corporation (IEC) (TASE: ELEC.B22) are working on the plan under a tight as possible schedule in view of the disruptions in Egyptian natural gas deliveries, Yam Tethys's dwindling reserves, and the likelihood that gas from Tamar will only come on line in early 2013.
The National Planning and Building Commission is due to discuss and approve the plan. Meanwhile, Natural Gas Pipeline Company is preparing the tender for the buoy, which will be manufactured by Norway's APL - Advanced Production and Loading AS. The estimated set up cost of the buoy is $80 million.
IEC plans to lease from Excelerate Energy Inc. of the US the gasification ship for converting liquefied natural gas back into natural gas. IEC wants to exempt this contract from a tender.
Minister of National Infrastructures Uzi Landau said, "The speed at which the buoy and the other components are set up is critical, because it will provide a bridge to help Israel deal with the natural gas shortage anticipated by mid-2012.
Published by Globes [online], Israel business news - www.globes-online.com - on July 19, 2011
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