Ampal-American Israel Corp. is a holding company focused on acquired interests in energy and related businesses in the State of Israel or those businesses deemed Israel-related. The company has a 12.5 percent interest in East Mediterranean Gas Co. (EMC), which yesterday informed Ampal that it has secured three 18-year Gas Sale Agreements valued at $1.3 billion.
These announced agreements are in addition to three previous gas sale agreements between EMG and the Israeli Electric Company, Dorad Energy Ltd., and Nesher.
“The signing of the three agreements by EMG, as well as EMG’s active and ongoing negotiations with other potential customers, including electricity producers and industrial companies, buttresses our view that EMG’s gas supply is stable and reliable and, we believe, demonstrates that the energy market in Israel, as well as the financing sources for these projects, believe in the reliability and competitiveness of EMG’s gas,” Yosef A. Maiman, chairman, president and CEO of Ampal stated in the press release.
The supply agreements are with three combined cycle cogeneration plants with combined production capacity of 270 megawatts. According to Ampal, the contracts call for gas deliveries through the duration of the contract.
The agreement with Ashdod Energy Ltd. concerns the cogeneration plant in the Agan Chemicals factory in Ashdod Israel, which has production capacity of 55 megawatts and 40 tons of steam per hour.
The second agreement, with Ramat Negev Energy Ltd., is a gas supply agreement for the cogeneration plant in the Makhteshim Chemicals Works factory in Ramat Hovav, Israel, which has production capacity of 115 megawatts and 110 tons of steam per hour.
Finally, the third agreement is with Solad Energy Ltd. for the cogeneration plant in the Solbar factory in Ashdod, Israel, which has production capacity of 100 megawatts and 90 tons of steam per hour.
According to Maiman, the company seeks out partners and customers looking for cost-efficient and environmentally friendly opportunities.
“EMG is working with more potential customers who desire to replace costly, polluting fuels with cleaner and cheaper natural gas, and they are turning to EMG as a solution,” Maiman stated.