The Ministry of National Infrastructures has published a further tender for the grant of a natural gas distribution license in the Southern region. The tender will include construction of the infrastructure of a gas conductor system for the area of the Cities of Ashdod, Ashkelon, Kiryat Gat, Kiryat Malachi and the area to the south. This is the third of six tenders which the Ministry is publishing in segments covering the whole of the country.

The concessionaire who wins the tender will undertake to establish a distribution company (spc), which will build and operate the distribution infrastructure from the PRMS plants (the gas pressure regulation plants) for businesses in the southern region. It concerns the establishment of infrastructure for the supply of natural gas at a pressure that is lower than 16 "Atmospheres" from the PRMS plants to the distribution consumers, with the object of assisting the medium and small size businesses and manufacturing plants that do not need gas at high pressure as do major sized plants and power stations. At the initial stage, infrastructure will be constructed for the industrial zones in the specified regions and also, in the second stage, for private domestic consumers. The license in respect of the tender is being allocated for 25 years and will involve a minimum investment amounting to approximately NIS 70 Million.

Government Companies, Oil Refinery Companies, Electricity Suppliers, etc, will not be permitted to enter the tender - all as detailed in the tender documents. The tender is being issued in accordance with Government Decisions and the infrastructures Minister's policy of taking action to promote the supply of gas to industrial consumers.

The Minister of National Infrastructures, Dr. Uzi Landau expressed his satisfaction with publication of the tender and said:

"The issue of the tender will facilitate the connection of many businesses in the south to natural gas. In that way we can enable residents of the region to breath clean air, and at the same time promote and strengthen manufacturing industry. The Ministry of National Infrastructures will continue taking action for the introduction of natural gas into the national economy wherever this is possible".

In the coming months the Ministry of National Infrastructures anticipates publishing a further tender for the establishment of natural gas distribution infrastructure in the Hadera and Emekim Region.