Delek teams with Gazprom on gas for vehicles

Gazprom Photo: Reuters
Gazprom Photo: Reuters

Delek Drilling has signed a memorandum of understanding with the Russian energy major on use of natural gas to fuel vehicles in Israel.

Israeli energy exploration and production company Delek Drilling LP (TASE: DEDR.L) has signed a Memorandum of Understanding with Russian energy major Gazprom. Under the terms of the agreement, the parties will jointly examine the possibilities of using natural gas as a fuel for vehicles (road, rail and water transport) and special equipment (agricultural, material-handling and other equipment) in Israel.

The MOU follows the signing of an MOU in June 2016 between the Ministry of Energy of the Russian Federation and Israel's Ministry of National Infrastructure, Energy and Water Resources. The document provided for the establishment of a joint working group.

“The gas industry contributes a lot to the sustainable and ecologically responsible development of the economy. And the use of natural gas as a fuel for vehicles is one of the most important parts of this contribution. Using gas as a vehicle fuel proves that transport without pollution is possible. It is not a remote possibility but a technology available today,” said Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee.

Delek Drilling CEO Yossi Abu said, “We are thrilled to establish collaboration with an international corporation such as Gazprom. The profound acquaintance and extensive capabilities of Delek in the Israeli energy market, alongside Gazprom’s intensity in the natural gas field will contribute to further development of the Israeli natural gas market in general, and in particular for natural gas based transportation. Natural gas based transportation is more efficient, cheaper and reduces pollution."

Published by Globes [online], Israel business news - www.globes-online.com - on October 2, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Gazprom Photo: Reuters
Gazprom Photo: Reuters
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