In a meeting that took place yesterday, headed by Minister of National Infrastructures Binyamin (Fouad) Ben-Eliezer, the minister was brought up to date on the status of the natural gas system. The meeting was also attended by the Ministry CEO, Hezi Kugler; Director of the Electricity Administration, Dan Weinstock; Head of the Natural Gas Authority, Shuki Stern; Israel Natural Gas Lines CEO Dan Vardi; and Israel Electric Corporation CEO Amos Lasker.

The Minister of National Infrastructures was apprised that last week already natural gas from Egypt reached the shores of Ashkelon. Currently, compliance tests are being done, and pending approval of the system by the Natural Gas Authority, distribution to customers will begin.

As for progress on the southern pipe line of natural gas, the minister has been advised that the piping system from Kiryat Gat to Sodom will be completed by the end of April.

Gezer station – the PRMS has been completed (the PRMS unit connects the nationwide pipe line with the lines conveying gas to the customers and reduces pressure). The station is slated to be hooked up to the power grid this week.

Hagit station – laying the pipe line has been completed. The PRMS is to be completed in April, and gas conveyance is expected to begin in May 2008.

Progress on the northern line ­– the contractor is slated to begin work on February 28. The minister reported to those present that in the previous week he met with the heads of the Druze community of Ir HaCarmel, together with Ir HaCarmel mayor, the head of the Zevulun local council, representatives of the Israel Natural Gas Lines co. Mekorot water company, Israel Railways, Trans-Israel Highway, and representatives of the Israel Land Administration. The forum agreed that the work carried out by the Israel Natural Gas Lines co. would be done according to the explanations provided by the Israel Natural Gas Lines CEO, namely digging as deep as possible, reversing the damage by returning the land to its prior condition and paying compensation for any damage caused. The mayor and the residents undertook to enable The Israel Natural Gas Lines co. to begin work.

Hooking up customers -  the minister was advised that between January and October 2008 the following customers would be connected: Agan, Sodom, Mishor Rotem. Between March and April 2009 the following customers would be connected: Nesher – Ramle (who requested a deferment), Tzafit, Alon Tavor, Yeroham, Saniv, Nevatim, Ir HaBahadim (City of Training Bases) and ORL – Oil Refineries Ltd.  All the above subject to approvals of the Regional Outline Plan.

Eastern section – Amendments to the regional outline plan are under way, and according to Ministry of Infrastructures CEO estimates should be completed by the end of  2010 or early 2011. In the coming weeks the minister of infrastructures is expected to submit a government resolution on the issue. This is a decision based on an earlier government resolution on promoting the project which will connect the area of Gezer in the south with Hagit in the north by an additional natural gas pipe which will complement the conveyance system presently being constructed by Israel Natural Gas Line.

And finally, the minister was updated about the distribution tenders. These tenders have been published, several companies sent in comments, answers were provided and the date of submitting proposals was extended to the end of April.

In conclusion of the meeting, Minister of National Infrastructures Binyamin (Fouad) Ben-Eliezer said that he was impressed with the rate at which the natural gas project is progressing. "Within a few months the revolution of natural gas will be felt throughout the entire country, thanks to successful cooperation between all the agencies involved, including Israel Natural Gas Line, the IEC and the parties in charge at the Ministry of Infrastructures."

As will be recalled, last week the social-economic cabinet approved the proposal of the minister of national infrastructures and the minister of finance to increase the number of suppliers of natural gas in Israel's economy and to build an installation for liquid natural gas (LNG). The cabinet ordered the Account General in the Ministry of Finance to appoint a tender committee which would publish a tender in the BOT method, with the chief requirements of planning the financing, establishment and operation of an LNG installation, either on land or sea, for the supply and sale of gas to consumers by a private party by July 1, 2009.