Tel Aviv — Israel Chemicals Ltd. has approved construction of a 250 megawatt natural gas-powered combined cycle power plant at Sdom. The plant will replace a smaller facility which runs on gas oil and fuel oil. The cost of the project is put at $320 million. The new plant will serve the company’s ICL Fertilizers unit which produces potash at the Dead Sea. The turbine will be provided by Germany’s Siemens AG. Construction is due to begin the third quarter of 2012 and be completed during the second half of 2015. ICL Fertilizers CEO Dani Chen said that the new plant is part of the company’s strategy to switch to natural gas to meet its energy needs. He added that the use of the combined cycle technology will lower the company’s costs and contribute to lowering air pollution. Israeli energy experts predict that the use of natural gas will substantially reduce the company’s energy costs and further increase its competitiveness. Two years ago Israel Corp., the majority shareholder in ICL signed a long-term supply agreement with East Mediterranean Gas Supply Co. for gas from Egypt. However earlier this year the Egyptian government cancelled all supply agreements with EMG, which supplied the Israeli market. The Israel Corp. is currently in talks with the with the Tamar consortium (Noble Energy Inc, Delek Drilling, Avner Oil and Gas, Isramco and Alon Gas Exploration) for supplies. The huge Tamar gas field located off of Israel’s northern Mediterranean coast is due to begin production in April 2013.
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