Israel is pushing through two new energy projects to meet expanding needs with limited resources.
State-owned Israel Electric Corp. (IEC) is seeking a partner to build an additional co-generation plant, valued at between $500 million and $600 million, at a site in northern Israel. The 450-MW plant would be located at Alon Tavor, near Afula, next to an existing facility.
A request for information (RFI), which was set to close on Oct. 1, says the investor would hold at least a 51% stake and possibly up to a 100% stake in the project. If the holding is less than 100%, IEC will assume the remainder.
The utility’s board of directors approved issuing the RFI to execute its commitment to build a second co-generation plant at the site and ease its financial crunch.
The company said it is studying the possibility of establishing a special company to carry out the project that would be in charge of project finance, design, construction, procurement and maintenace. The selected partner would be a key player in that entity, which will own and operate the project.
Further, the new company would have to obtain a necessary private power license from Israel's Public Utilities Authority (Electricity) and other state authorities.
Separately, Israel Natural Gas Lines Ltd. has issued two international tenders for a planned $100-million floating liquefied-natural-gas (LNG) terminal off the country’s central Mediterranean coast. Israel's National Planning Council gave its final approval for the project, which will be located about 10 kilometers off the coast of Hadera.
The company issued a tender for consulting and supervision services for the construction, operation and maintenance of the planned terminal and a separate one for design, procurement, construction, installation and commissioning of a buoy system and related facilities. The buoy, to be supplied by Norway’s APL, is designed to connect with a re-gasification vessel.
The tender calls for LNG infrastructure to be completed by the end of October 2012. It will serve IEC and other consumers of natural gas and serve as a backup for local natural-gas supplies. The floating terminal will be able to handle up to two billion cubic meters a year.
Israel's National Infrastructure Ministry has been pushing the floating-terminal option to deal with an expected shortage of natural gas, possibly as early as mid-2012. The concern has been exacerbated in recent months following the shutdown of gas supplies from Egypt.
In addition, Israel's sole local supplier expects that its natural-gas well, sited off Israel’s southern Mediterranean coast, will be depleted before the giant Tamar field, located off the country’s northern coast, is set to come on line in mid-2013.