Delays in the start of natural gas deliveries from the Tamar field are liable to cost the economy up to $700 million, estimates National Gas Authority director Shuki Stern. He made the comment during a recent meeting of the National Planning and Building Commission.
It was also made clear during the meeting that Ministry of National Infrastructures officials have reservations about Minister of National Infrastructures Uzi Landau's position to build a terminal for Tamar's gas on the site of the Ein Ayala quarry.
The partners in the Tamar field have said that they plan to begin gas deliveries from it in 2012. However, sources at the Natural Gas Authority believe that deliveries will not begin before 2013, or even 2014.
Such a delay is liable to compel Israel Electric Corporation (IEC) (TASE: ELEC.B22) to increase its use of expensive and polluting diesel and crude oil at its power stations, instead of natural gas. This would incur extra costs, which would be passed on to consumers.
Objections by residents of Zichron Yaakov, Furadeis, and the Carmel coast to the construction of the natural gas terminal at Hof Dor are the reason for the possible delay in gas deliveries from Tamar. At the last meeting of the National Planning Commission, it was decided to examine six alternative sites for the terminal.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2010
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