Indian giant Reliance enters Israeli market

Reliance signed a collaboration agreement with Eilat Ashkelon Pipeline Company.

Sources inform ''Globes'' that Indian energy giant Reliance Industries Ltd. (BSE: RIL) is the latest international player to take an interest in the Israeli energy market. The company has signed an agreement with the Eilat Ashkelon Pipeline Company Ltd. (EAPC) for the storage of fuel at EAPC's terminal in Ashkelon.

Reliance, which owns refineries and gas stations across India, is looking at the option of exporting refined products to Europe via Israel and the Mediterranean Basin. Fuel market sources believe that part of the inventory that Reliance is to store in Ashkelon could also be marketed locally, offering an alternative to purchasing fuel from Oil Refineries Ltd. (TASE:ORL) in Haifa and Paz Ashdod Refinery Ltd. Energy market sources say that local energy companies have also expressed an interest in purchasing fuel from Reliance.

One of the largest companies in India, Reliance has activities in energy, infrastructure, telecommunications electricity generation and biotechnology.

Most of the imports to Israel of refined products are transacted through Swiss industrial concern Glencore International and European energy conglomerate Vitol Group, and the entry by Reliance will offer local fuel companies another channel through which to purchase their energy needs.

A spokesperson for EAPC confirmed that an agreement had been signed with the Indian company but declined to comment on its commercial value. "EAPC is providing storage services to Reliance of India. We have a policy of not disclosing commercial details relating to our customers and are therefore unable to make any comment beyond this," he said.

Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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