Natural gas from Israel's offshore Tamar field will again start flowing from tomorrow morning, the Ministry of National Infrastructures, Energy and Water Resources has announced.
The supply of gas was halted last Thursday due to a crack in one of the pipelines at the Tamar rig in the Mediterranean. The incident took place during routine maintenance work while emptying natural gas from the offshore drilling where it reaches the rig's treatment system. During the emptying process a defect was discovered in the pipe linking the reservoir and its flame to the supply line.
The fault required the operation of emergency procedures and shutting down the gas flow, which is vital for operating Israel's power stations and producing electricity for the country's grid. More expensive and polluting diesel fuel was used although the Public Utilities Authority (Electricity) has ruled that the extra expense will not be passed on to the public.
Nevertheless, there will be considerable financial damage and costs to the economy with the natural gas flow halted for six days. The Public Utilities Authority (Electricity) is investigating the supply commitments of the Tamar partners to the electricity producers ( Israel Electric Corporation (IEC) (TASE: ELEC.B22) and private plants) and its compensation obligations if supply is halted.
Estimates are that it costs the IEC upwards of NIS 20 million per day to purchase alternative fuels to Tamar's natural gas.
Published by Globes [online], Israel business news - www.globes-online.com - on September 26, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017