The Ministry of Energy and Water Resources will establish an inter-ministerial team to promote the construction of a compressed natural gas(CNG)infrastructure,which will supply gas to Phoenicia America-Israel(Flat Glass)Ltd.and other enterprises until they are connected to the national natural gas pipeline.Minister of Energy Uzi Landau ordered the establishment of the team in view of the urgency of the project.
Phoenicia Flat Glass is liable to close if it does not begin receiving gas by September 2013.If it closes,the company's 400 employees,and 700 employees of suppliers,could lose their jobs.The company fell into financial difficulties,after accumulating NIS 323 million in debts.It has suffered heavy operating losses because of the higher price of industrial oil.The extra cost to the company of using industrial oil is reportedly NIS 5 million a month.
Phoenicia Flat Glass,located in the Tziporit industrial zone near Upper Nazareth,is only due to be hooked up to the natural gas pipeline network in April 2014.
Last month,Phoenicia Flat Glass's administrative trustee signed an agreement to buy CNG from Supergas Ltd.,a subsidiary of Granite Hacarmel Investments Ltd.The CNG,which will be delivered by road tankers,could be an interim solution until the factory is hooked up to the natural gas pipeline,and afterwards will serve as a back-up fuel.
Supergas plans to build a natural gas compression plant at Alon Tavor,just 30 kilometers from Phoenicia Flat Glass's plant.
