Dorad Energy signs NIS 500m power deal with Strauss

The contract comes two weeks after Dorad signed a natural gas purchasing agreement with the Tamar gas field partners.

Independent power producer Dorad Energy Ltd. has signed a NIS 500 million power purchasing agreement with food company Strauss Group Ltd. (TASE:STRS) to supply up to 27 megawatts of electricity over 15 years. The contract comes two weeks after Dorad signed a natural gas purchasing agreement with the Tamar gas field partners.

Dorad is in the final construction stages of its $1 billion 840-megawatt natural gas-driven power station, Israel's largest independent power station, at the Eilat-Ashkelon Pipeline Company Ltd. terminal in Ashkelon. The power station is due to come online during the fourth quarter of 2013, and possibly during summer.

Dorad has contracts for the sale of over half of the power station's capacity. Its customers include the Ministry of Defense, Mekorot National Water Company, food company Osem Investments Ltd. (TASE: OSEM), Keter Plastic Ltd., hotel chain Isrotel Ltd. (TASE: ISRO), and Fattal Hotel Management Ltd. The company is in advanced talks for the sale of the rest of the electricity.

Dorad CEO Eli Asulin said, "We're pioneers in Israel's independent power industry. We will continue to sell the remaining electricity to private customers, and we will contribute to improving the reliability of the electricity grid and increasing the reserves Israel needs to meet peak demand in the years ahead.

Eilat-Ashkelon Pipeline Company owns 37.5% of Dorad, Turkish conglomerate Zorlu Endustriyal ve Enerji Tesisleri Insaat Tie AT (which is building the project) owns 25%, Adeltech Ltd. unit Adelcom Ltd. owns 18.75%, and A target=new href=http://www.dori.co.il/>Dori Group Ltd. (TASE: DORI) owns 18.75%.

Published by Globes [online], Israel business news - www.globes-online.com - on October 30, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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