General
Principles:
1.
The Project will be implemented by the
Ministry of National Infrastructures
which has set up the Natural Gas Project
Management - N.G.P.M.
2. The project should benefit the
overall Israeli economy (not only a
specific sector).
3. The project will be implemented by
the private sector (Purchase;
Transportation; Distribution).
4. The Government will be involved
in:
a)
Planning and organization
b) Approval of suppliers
c) Setting up the legal frame work
d) Providing the "right of
way"
e) Issuing tenders
5.
The transportation company - will
operate on "Open Access"
basis.
Time table:
End
of 1997 Conclude the Master Plan;
signing up for Gas supply
End of 1998
1) Ensuring the "right of
way" and setting up the legal
frame work
2) Tenders for Transportation and
Distribution
1999-2000
Construction period.
2000 Gas flow
Implementation:
Purchase
of gas
1.
Will be by a consortium of the
principal Israeli consumers.
2. Delivery point will be form:
Piped NG - The
Israeli Border
L.N.G. -
Mediterranean port
1.
Major customers will buy the Gas via the
consortium, directly from E.T.G.C (Egypt
Trans Gas Company).
2. Medium and small customers will buy
gas from the distribution company.
3. Selection of the distribution company
will be through an open tender.
Main criterion will
be - commitment to develop the market.
Key
Data in 1995
Refining Throughput - approximately 12
million tons of crude oil; Sales
Turnover - $ 1,640 million; Export Sales
- $ 210 million; Shareholding - 74%
Government of Israel, 26% The Israel
Corporation Ltd.
Subsidiaries
Gadiv Petrochemical Industries Ltd.
(100%) - aromatic solvents
Carmel Olefines Ltd (50%) -
polyethylene, polypropylene
Haifa Basic Oils Ltd. (50%) - basic lube
oils
As
the only company in Israel refining oil
and supplying petroleum products, ORL
plays a central role in planning and
developing energy use in Israel.
The
company owns and operates two refineries
in Israel. The Haifa Refinery has a
capacity of 180,000 Bspd of crude oil.
This plant produced most of the
feedstock for the Haifa Bay
Petrochemical Industry. In addition, the
Haifa Refinery operates a power plant
which generates the steam required for
the plant facilities and for neighboring
industrial plants, The Haifa Refinery
also supplies all of its own electricity
requirements. The Ashdod Refinery has a
refining capacity of 90,000 bspd.
A
new 5 year development program, to begin
early 1997, includes the following:
-
Commissioning a new continuous catalytic
reformer in the Haifa Refinery to
produce 102 octane gasoline and thus
enable the company to cope with growing
demand for unleaded gasoline.
-
Improvements in the Catalytic Reformer
at the Ashdod Refinery.
-
Improvements in the Gas Oil Hydro-treaters
at both Ashdod and Haifa to allow
reduction in diesel oil sulfur content.
-
Expansion of the steam and electricity
production capabilities at both
refineries including equipment for
further reduction of air and water
pollution.
-
A new hydro-cracker unit for vacuum gas
oil to produce quality distillates.
ORL
devotes much thought and planning to an
examination of new directions and
strategic planning for the era of peace
in the Middle East, in the light of
expected developments in the global and
European refining markets. The recession
in the refining industry, the
increasingly stringent environmental
demands, and the implications of open
borders and increased competition, pose
a difficult and complex challenge for
ORL.
The
company is expecting deregulation and
liberalization of the energy market in
Israel followed by privatization of the
company. For ORL, part of the
privatization procedure is a joint
venture with a strategic investors (a
major oil company) for future
involvement and development of refining,
petrochemicals and downstream
activities. An important part of the
energy sector is the infrastructure
needed to secure adequate, safe, clean
and un-interrupted energy distribution
to the residents of the State of Israel.
General Section
