The Haifa municipality opposes replacing the oil pipeline of Petroleum and Energy Infrastructure Ltd. (PEI), which carries 30% of Israel's oil imports to Oil Refineries Ltd. (TASE:ORL). The current pipeline is liable to crack at any moment, which would dump thousands of tons of oil into Haifa Bay and its environs. This would be a lethal blow to the area's environment, and contaminate the beaches and infrastructure installations.
The pipeline also serves as a back-up for PEI facilities near the Gaza Strip if they are damaged by a Kassam rocket strike.
Haifa municipal officials told "Globes" that the municipality wants to move the Israel Navy base from Bat Galim to Kiryat Haim, where the marine outlet of the pipeline is located. For this reason, the municipality wants no PEI installations in the area. The sources believe that Kiryat Haim residents are unaware that the Navy base will be built on the neighborhood's beach, and for this reason they have not yet expressed an opinion on the matter.
Meanwhile, the new pipeline, purchased at a cost of NIS 33 million, is en route to Israel, and due to arrive at the Eilat Port in a few days. In response to the Haifa municipality's objections, Minister of Environmental Protection Gideon Ezra sent a letter to Haifa Mayor Yona Yahav asking him to lift the objections to repairing the pipeline.
The Haifa municipality wants PEI to move its marine terminal to new site, at its own expense, so that it will not interfere with the expansion of Haifa Port Company Ltd. or the new Navy Base. The municipality will withdraw its objections when PEI agrees to do so.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2008
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