The government will decide on the subject of gas exports after Prime Minister Benjamin Netanyahu returns from China in two weeks, Minister of Energy and Water Resources Silvan Shalom believes.

During a tour of the Israel Electric Corporation (IEC) (TASE: ELEC.B22) Gezer power station Shalom said, "We will submit a proposal that will be right economically and take into account future generations, and the need to bring more investors, and which will be right socially."

Shalom was asked if the amount of gas that will be permitted for export will be lower than the recommendation of the Tzemach Report. He said, "There could be a certain gap that would benefit the whole thing. The question is for how many years do we need to preserve the reserves and all this will be taken into account, and we are really close to the moment of decision. When the prime minister returns we'll go to him and we can form a decision."

Regarding the IEI reform, Shalom said, "The situation in which IEI has run up a debt of NIS 76 billion sets off red lights and must be changed."

Shalom visited the Gezer power station to examine from close-up the damage caused by the breakdown of one of the station's generators. IEI will procure an alternative generator from a power station in Holland, which should reach Israel in June. The breakdown of the generator is reducing the IEC's production capacity by 370 megawatts and increases the risk of power outages in the summer.

Published by Globes [online], Israel business news - www.globes-online.com - on April 30, 2013

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