The Israel Land Administration (ILA) and Pi Glilot have reached a memorandum of understanding to move the fuel depot at the Pi Glilot junction north of Tel Aviv.
Under the agreement, the site will cease fuel deliveries in January 2003, considerably earlier than the June 2004 timetable set by the government this week. The agreement includes paying hundreds of millions of shekels in compensation to Pi Glilot's owners, Delek Fuel Corp., Paz and Sonol.
The fuel depot covers hundreds of acres, worth $2 billion in building rights. It is one of the most expensive tracts of land in Israel planned to be rezoned for residential, industrial and commercial use.
The state and Pi Glilot share ownership of the land at the Pi Glilot junction. Some of the land is privately owned, and Pi Glilot leases part of the site from the state in a 50-year lease. ILA will finance the compensation to the fuel companies from the building rights that it will sell once they are unfrozen.
The ILA is reportedly negotiating with Amisragas and Pazgaz to move their gas tanks at the fuel depot. If a deal is concluded, they will receive little compensation, since they have no rights to the land itself, and will compensated only for the cost of moving to another site, probably in the Negev.
The fuel depot is due to be moved to existing terminals in Jerusalem, Ashdod and Beer Sheva. An agreement to move the gas tanks will probably take effect only in another year.
Published by Globes [online] - www.globes.co.il - on October 3, 2002