The Ministry of National Infrastructures has decided to reject the proposal by the Ministry of Finance and the Manufacturers Association of Israel to cancel the undersea route for the natural gas pipeline and build a totally land-based pipeline.
Minister of Infrastructure Joseph Paritzky today explained in person his opposition to a land-only pipeline to the Manufacturers Association. The Ministry of National Infrastructures declined to comment on the matter, saying it had been an “internal meeting”.
At his meeting with the manufacturers, Paritzky emphasized that he planned to cooperate with the Ministry of Finance in the construction of the undersea route. As reported, the Ministry of Finance and the Manufacturers Association proposed canceling the undersea gas pipeline, which required an investment of over $100 million, although the Israel Electric Corporation (IEC) had already begun choosing suppliers for the project.
The Ministry of National Infrastructures plans in any event to set up a land-based pipeline, once the undersea pipeline is finished. The land-based pipeline is slated for the second stage, after a second gas supplier is chosen, in addition to the Yam Thetis partnership.
Paritzky decided not to build the land-based pipeline before a second supplier is chosen. British Gas is offering gas discovered off the Gaza coast, while Eastern Mediterranean Gas (EMG) is offering Egyptian gas.
The Ministry of Finance and the Manufacturers Association believe that the undersea pipeline can be dispensed with. The manufacturers say the land pipeline should be built, in order to enable enterprises, which are scheduled to consumer a quarter of the gas, to obtain natural gas quickly. The IEC, which is scheduled to consume three quarters of the gas, has already signed an 11-year supply contract with Yam Thetis.
Published by Globes [online] - www.globes.co.il - on December 10, 2003