Israel takes emergency measures to shore up energy supplies

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, July 19 -- Israel Electric Corp. (IEC), strapped for supplies of natural gas following the recent attack on a pipeline from Egypt, will be allowed to use 500 million new Israeli shekels (NIS) ($145 million) for the purchase of emergency supplies of diesel fuel instead of power lines.

IEC Chief Executive Officer Eli Glickman asked Minister of National Infrastructures Uzi Landau for permission to divert the money to diesel purchases as the utility's own reserves will be used up by end-July. Without additional funding, IEC will reach the limit of its ability to meet electrical demand in August.

Landau originally budgeted the money for the construction of power lines, but he agreed to divert the funding to the purchase of diesel after Gluckman advised that construction of the new power lines could be postponed until 2012.

IEC also wants a similar redirection of NIS 880 million that is currently held by Israel’s Public Utilities Authority (Electricity) for the construction of power stations. Additionally, IEC believes it can raise a further NIS 400 million on the capital market.

Altogether, IEC will require NIS 3.7 billion in 2011 to purchase enough diesel to replace the shortfall in gas caused by disruptions in deliveries along the line from Al Arish in Egypt to Ashqelon in Israel.

The most recent bombing was the fourth in 6 months, cutting off badly needed supplies during the hot summer months when Israelis' increased use of air conditioning sends electricity demand off the charts (OGJ Online, July 18, 2011).

LNG terminal planned
Meanwhile, in an effort to shore up and diversify supplies over the longer term, a committee overseeing oil and gas facilities has approved an application by Israel’s Ministry of National Infrastructures for construction of a buoy that will serves as a terminal for LNG carriers.

IEC and the government are said to be working on the plan under a tight schedule due to the gas delivery disruptions, as well as the dwindling reserves of Yam Tethys and the likelihood that gas from the Tamar field will come on line only in early 2013.

“The speed at which the buoy and the other components are set up is critical, because it will provide a bridge to help Israel deal with the natural gas shortage anticipated by mid-2012,” said Landau.

While Israel’s National Planning and Building Commission is due to discuss and approve the plan, Natural Gas Pipeline Co. is preparing the tender for the buoy, which will be manufactured by Norway's Advanced Production and Loading AS at a cost of $80 million.

IEC plans to lease from Excelerate Energy Inc., The Woodlands, Tex., the ship that will be required to regasify LNG brought into Israeli waters. IEC is looking to offer Excelerate a contract that is exempt from a tender.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Bear Head LNG exempted from 2012 Canadian environmental act

02/16/2015 Liquefied Natural Gas Ltd.’s wholly owned subsidiary Bear Head LNG Corp. received notice from the Canadian Environment Assessment Agency (CEAA) tha...

Watching Government: New York moves ahead on LNG

02/16/2015 New York, a state more often associated with fiercely resisting unconventional natural gas exploration and production, established a program to reg...

BG's 2015 budget 'significantly lower' than 2014

02/16/2015 BG Group plans capital expenditures on a cash basis of $6-7 billion in 2015, a range it says is "significantly lower than 2014" due to &q...

Alaska LNG project partners file resource reports with FERC

02/12/2015 A series of draft environmental and socioeconomic reports for the Alaska LNG project have been submitted to the US Federal Energy Regulatory Commis...

Australia Pacific LNG receives first gas at Curtis Island

02/12/2015 The Origin Energy Ltd.-led Australia Pacific LNG (APLNG) has reached a major milestone with first gas arriving at the group’s LNG plant on Curtis I...

InterOil wins arbitration over rights dispute with Oil Search

02/11/2015 The International Chamber of Commerce arbitration panel in London has found in favor of InterOil Corp. in its battle with Oil Search Ltd. over pree...

Study finds FLNG scheme ‘viable’ for Pandora field development

02/11/2015 A recent study has found that Cott Oil & Gas Ltd’s plans to use a floating LNG (FLNG) vessel for development of Pandora gas field in the Gulf o...

OGJ Newsletter

02/09/2015

International news for oil and gas professionals

Inpex starts development drilling at Ichthys field

02/04/2015

Inpex Corp. has started development drilling in Ichthys gas-condensate field in the Browse basin, about 200 km offshore Western Australia.

White Papers

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected