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Supergas announced: we will participate in natural gas distribution tenders in north Israel

24 September, 2012

Supergas, from Granite Carmel's group own by David Azrieli, will participate in the tenders for the establishment of a natural gas distribution infrastructure and low pressure in the north. Granite announced today that Supergas will participate in both the tenders, one in the North of Israel and one is in the Hadera and the valleys areas, in partnership (50%) with "Shapir" company. However, because the two wan the tender in the center, "SuperNG" will be able to win only one of the tenders.

natural gas transmission in Israel  is preformed by high pressure of the government's company  -INGL  infrastructure .

 Only large customers, such as power plants, consuming the gas directly from the pipeline. For small customers, like factories and hotels, a low-pressure distribution system is being established (up to 16 bars) in three areas of the country, the Negev, south and center of Israel. In this areas the low-pressure distribution system is own by companies that already started building the infrastructure. Earlier this year, the Gas Authority issued to the Ministry of Energy Tender for the establishment of infrastructure in the north of Israel.

However, the authority had to postpone the tender's closure for approximately two months, and guarantee a grant of 50 million for one of the tenders, as a reimbursement for part of the construction's expenses that us valued by approximately 170 million shekels. This is due to the relatively low profitability of the construction of the infrastructure, as perceived by potential investors.

Another factor that limits potential bidders in the tenders is that you cannot hold more than two distribution licenses. Therefore, only "Amisragas" companies, "Electra" and "Chemo Aharon" company, can bid in the tenders. They wan the tenders through mutual companionship. "Supergas" and "Shapir" company, who wan the gas distribution tender in the center area of Israel has started the construction of the pipeline. Therefore the company can receive only one of the licenses in North.

 

After the establishment of the distribution infrastructure, the concessionaire operates the system for 25 years, and charging money from consumers. They should also contact with the natural gas supplier to purchase the gas itself. However, strict rules allegedly prevent the concessionaire to have an advantage in the tender that could happen in the provision of gas supply.