Tel Aviv—Israel’s Environmental Protection Ministry has decided to postpone the bid deadline for a new ammonia plant in southern Israel until mid-May. The ministry set May 16 as the final day for bids to be presented. The initial deadline had been set for the end of March. The ministry said that the government tenders committee is studying various issues presented by potential bidders in the process in an effort to reduce the risks involved with the project. The ministry specifically cited the price of natural gas, and said that discussions were underway in an effort to improve the conditions in order to shut down the ammonia storage facility in Haifa. Environmental Protection Minister Avi Gabbai has requested Energy and Water Minister Yuval Steinitz to suggest a solution to the price issue regarding gas from the Tamar offshore field that would be allocated for the ammonia facility, as well as availability of gas. The Energy and Water Ministry is working on a formula that would allow for the subsidizing of the gas price for the ammonia plant. Israeli domestic gas prices were fixed a year ago in line with a reform of the gas sector. This has presented a problem, as they are substantially higher than current international prices, making the viability of the proposed ammonia plant questionable. The other issue is whether sufficient gas supplies will be available for the plant if it comes online in three years’ time and before the larger Leviathan offshore field is developed. In any case, the delay of the tender closing will lead to a further delay in the shutdown of the storage facility in Haifa – until late 2018 at the very earliest. Fears have recently been heightened due to threats from Hezbollah that it might bomb the storage tank (GM Feb. 19, p. 13).
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