Energy and car companies should prepare for the entry of cheaper natural gas into the Israeli market and the public's demand for it. 65% of Israeli drivers would consider switching to natural gas, which is cheaper than gasoline, according to a survey by Meida Shivuki CI Ltd. for the energy conference of Eco Energy Ltd., a financial and strategic consultancy firm, on Tuesday and Wednesday.
Assuming that the use of natural gas to generate electricity will lower its production costs, 74% of the public want the full savings accrued to their electricity bills, and they will not accept only a partial reduction in rates in order to improve Israel Electric Corporation's (IEC) (TASE: ELEC.B22) financial condition.
Jerusalem residents are less patient with IEC's condition compared with residents of other areas. In contrast, residents of Haifa and the north are prepared to temporarily accept a partial reduction in electricity rates in exchange for improving IEC's financial condition.
50% of Israelis are prepared to "sacrifice" the serenity of their residences for the construction of a natural gas handling and cleaning facility nearby if an onshore facility is cheaper than an offshore facility and therefore result in greater savings. Men are more open to this option than women.
49% of the public support natural gas exports to Turkey even without improvement in its relations with Israel, compared with 51% of respondents who said that improved diplomatic relations should be a precondition for gas exports.
Published by Globes [online], Israel business news - www.globes-online.com - on November 19, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013