Delek will supply compressed natural gas to Strauss dairy and confectionary plant in the Galilee.
Delek Group Ltd. (TASE: DLEKG) unit Delek Israel Fuel Corporation Ltd. has signed a NIS 50 million compressed natural gas (CNG) contract with food company Strauss Group Ltd. (TASE:STRS). Delek Israel will supply four million cubic meters of CNG a year to Strauss's dairy at the Bar Lev Industrial Zone in the Galilee and the confectionary plant in Nazareth.
Delek Israel will convert the plants to operate on CNG and to train their staff in its use. The CNG will initially be supplied from the CNG plant at Ashdod, and later via pipeline.
Delek Israel CEO Avi Ben-Assayag said, "Strauss is one of the first companies to adopt the new global approach to switch to CNG, which is much cheaper than other fuels on the market." He predicts that the company will sign more CNG supply contracts with other companies.
Published by Globes [online], Israel business news - www.globes-online.com - on January 9, 2014
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