IEC's board has approved a 15-year delivery contract with Israel Natural Gas Lines.
The Israel Electric Corporation (IEC) board, headed by chairman Mordechai Friedman, has approved a draft contract with Israel Natural Gas Lines Ltd. for the delivery of natural gas. The 15-year NIS 2 billion contract is for the delivery of gas to all of IEC's power stations. The Alon Tavor power plant in Afula and the Haifa power plant will be the last two stations to convert to natural gas in 2009.
IEC said that contract for the delivery of natural gas will cost $50 million a year when all the gas-driven power stations come on line.
IEC has signed a contract with East Mediterranean Gas Co. (EMG) for the purchase of 1.7 billion cubic meters of gas a year for 15 years. IEC has an option to extend the contract by five years and increase the order by 25%.
Published by Globes [online], Israel business news - www.globes-online.com - on February 12, 2008
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