A consortium of Israeli companies signed an agreement in principle to build a natural gas pipeline and distribution infrastructure in Bulgaria for $15 million. The consortium consists of Dorgas (40%), Dankner Ellern Infrastructures (40%) and Africa-Israel Investments (20%).
The consortium signed the agreement with Bulgarian company Overgas, which is building a natural gas distribution infrastructure to three cities, with 220,000 residents. The investment will be spread over ten years, and will gradually cover the industrial, commercial, public and household sectors.
50% of Overgas is owned by Russian energy giant Gasprom, the world's largest natural gas company.
Dorgas is owned by Dor Energy and Alon Israel Fuel, controlled by David Weissman. Dankner Ellern Infrastructures is owned by Benny Dori and Gadi Dankner.
Dorgas was founded 13 years ago after the reform in Israel’s oil and gas market, and is now one of Israel's two largest natural gas companies. Dorgas markets cooking and heating gas for the household, industrial and institutional sectors.
The Israeli consortium will own 34% of the Bulgarian venture, Overgas will have 50%, and three Bulgarian infrastructure companies that will carry out the project, will own 15%. Dorgas general manager Eli Misgav said project was a breakthrough for Dorgas in the international market, and the company plans to distribute and market natural gas in Israel in the future, when it becomes available.
Published by Globes [online] - www.globes.co.il - on June 4, 2002