Energy Ministry mulls gas-to-liquid facility

The ministry will support feasibility tests for a plant in Israel to produce transport fuels from natural gas.

The Ministry of National Infrastructure, Energy, and Water Resources today published a tender for conducting a feasibility test for a gas-to-liquid (GTL) facility in Israel. The winning company will receive half the cost of the feasibility test from the ministry, up to NIS 200,000. Under the tender terms, the test will be for one or more sites on which the plant is likely to be constructed.

A GTL plant makes it possible to turn natural gas into any type of conventional fuel: diesel, gasoline, jet fuel, and gas for cooking and heating. These fuels have similar characteristics whether they are produced from oil or from natural gas, but producing them from gas has significant environmental advantages, because the sulfur content is negligible in comparison with oil. Because the characteristics of the fuel produced from gas are similar to those of fuel currently in use, the existing storage, transportation, and distribution infrastructure can be used for it, and vehicles can be used without special adjustment of their motors.

Ministry of National Infrastructure, Energy, and Water Resources director general Shaul Meridor said, "We are constantly taking action to expand the Israeli natural gas sector. The innovative technology for producing liquid fuel from natural gas will make it possible to extend the use of natural gas to additional economic sectors, and substantially increase demand." In January 2013, the government decided to reduce dependence on oil for transportation by 30% by 2020, and by 60% by 2025.

Consortia participating in the tender will have to include companies with various capabilities: companies owning national or local infrastructure that is likely to support construction of a GTL facility, such a refining plant, a pipeline for transporting oil and its products, a distribution facility, suitable land, etc.; a company with proven technology, or an official representative of the owner of technology for building a GTL plant; and a company with proven know-how and experience in engineering consultation, design, or management of at least two projects of $100 million or more each for constructing petrochemical plants or energy facilities.

Published by Globes [online], Israel business news - www.globes-online.com - on October 13, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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