IEC mulls leasing 2nd LNG tanker

Energy Minister Uzi Landau and IEC want to increase the use of LNG before the Tamar field comes on line.

Israel Electric Corporation (IEC) (TASE: ELEC.B22) may lease a second liquefied natural gas (LNG) tanker to import natural gas. Yesterday, Minister of Energy and Water Resources Uzi Landau told executives of Excelerate Energy Inc., "We would be interested to hear about the possibility of leasing another LNG tanker soon, in order to meet Israel's needs until gas arrives from Tamar."

Landau's meeting with the executives of Excelerate, which is supplying the LNG tanker for Israel's LNG imports, was held the day after the start of gas flow from the LNG buoy built by Israel National Gas Lines Ltd. 12 kilometers west of coal unloading pier at Hadera.

IEC says that the start of LNG flows has changed the mix of fuels used to generate electricity. IEC says that the gas imports allow it to completely end the use of diesel and industrial oil to generate electricity, which could save consumers hundreds of millions of shekels and greatly improve the air quality near power stations. According to IEC, the ratio of gas in the mix of fuels has doubled to 32%, with coal accounting for the other 68%. Before the start of LNG imports, the mix of fuels was 68% coal, 16% natural gas, and 16% diesel and industrial oil.

Published by Globes [online], Israel business news - www.globes-online.com - on January 28, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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