Israel Electric Corporation (IEC) (TASE: ELEC.B22) is considering fueling the Reading Power Station in north Tel Aviv with heavy industrial oil, using hundreds of road tankers.
Two weeks ago, the government approved an abbreviated procedure for IEC to resume operation of the power station for extraordinary use, using industrial oil, as one of the measures for dealing with an expected electricity shortage. The Reading Power Station, one of IEC's oldest, was converted to natural gas in 2006. It has two generators, for a total capacity of 400 megawatts, or 4% of IEC's production capacity. IEC chairman Yiftach Ron-Tal asked to be allowed to operate it using industrial oil, when it became clear that there was not enough natural gas for the power station.
IEC CEO Eli Glickman ordered one of Reading's generators to be ready to use industrial oil by mid-July, and the second generator to be ready by August 1.
Sources inform ''Globes'' that it is highly unlikely to carry industrial oil to the power station by its old undersea pipeline, which has not been used since the power station was taken offline. For one thing, the pipeline would have to be tested for possible leaks that could contaminate Tel Aviv's beaches.
IEC therefore has no choice but to fuel the Reading Power Station with tankers, and hundreds of tankers will be needed to fill the power station's tanks. In addition, there are not enough tankers able to carry industrial oil. Industrial oil is one of the most polluting fossil fuels available, and it tends to solidify, requiring the need to transport it in specially heated tankers.
IEC said, "Use of the fuel pipeline is still under examination, and no other decision has been taken. The pipeline will be tested by a hydrostatic test, based on procedures and regulations, and including safety measures to handle leaks, if any. If the pipeline is found to be fit, it will be used to carry fuel. This is subject to approval by the Ministry of Environmental Protection. At the same time, we are prepared to fill the power station's tanks by tankers."
Today, the cabinet unanimously approved a plan to expedite the planning of facilities to use natural gas. Prime Minister's Office director general Harel Locker drew up the plan. At today's cabinet meeting, Prime Minister Benjamin Netanyahu criticized bureaucratic delays in building a natural gas terminal in the Dor Beach area, which government sources estimate has cost the economy NIS 10-15 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 10, 2012
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