Israel Electric Corporation (IEC) (TASE: ELEC.B22) has published a request for information (RFI) to international companies and traders for the import of liquefied natural gas (LNG) to replace Egyptian natural gas, whose supply has been suspended again, causing a sharp jump in electricity rates. The price of LNG is 2-3 times the price of Egyptian natural gas, but still 50% less than the price of diesel, which IEC is currently buying as an alternative fuel to generate electricity.
There have been reports of contacts between Israeli parties and Qatar, the world's largest LNG exporter. Trinidad and Tobago is another major LNG exporter. Egypt also has an LNG infrastructure for exports, but surplus domestic demand greatly limits its gas exports.
Israel would import LNG by tankers that would moor at a gas terminal buoy located off IEC's coal terminal at Hadera. Israel Gas Pipelines Ltd. is responsible for building the buoy.
IEC's RFI states that it wants to buy gas in deliveries every two weeks. On the basis of these figures, total gas procurements would amount to 1.5 billion cubic meters.
At its peak, Egypt's East Mediterranean Gas Company (EMG) delivered at an annual rate 2 billion cubic meters of gas.
Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011