Infrastructure for Energy Independence

Israel Natural Gas Lines Ltd. (“INGL”) is a government owned corporation, established in 2003 for the construction and operation of the national natural gas transmission infrastructure. In 2004, the Minister of Energy and Water Resources awarded the company a license for a period of 30 years. This national project is of extreme importance for Israel from two standpoints – its impact on Israel’s economy and industry, and its contribution to improvement of environmental quality and reduction of air pollution. INGL adheres to the most stringent international standards in its construction and operations, and makes use of sophisticated logistical tools, advanced technologies and a wide range of international professional contractors and consultants. INGL currently has 100 employees involved in planning, engineering, construction, operations, maintenance and management.

Significant Savings for the Economy and Cleaner Air

The natural gas that INGL transports is currently considered the cheapest and most cost-efficient energy source available to the Israeli economy, and its use significantly reduces the costs of generating electricity and energy for industrial needs. From INGL’s establishment in 2003 to the present, the Israeli economy has saved on average more than $2 billion per year. Energy generated from natural gas is cleaner than that generated by other fuels such as diesel oil, fuel oil and coal, emitting fewer pollutants and greenhouse gases during combustion.

Natural Gas Pipelines Throughout Israel

The Israel natural gas transmission system encompasses a number of systems, including:

  • Delivery stations located in Ashdod and Ashkelon to receive natural gas delivered on behalf of shippers by suppliers upstream.
  • A deep water LNG receiving terminal and mooring system to receive natural gas from floating storage and regasification vessels, located approximately 10 kilometers west of Hadera’s coastline (in operation since January 2013), and connected through an offshore line to the national transmission system.
  • Underground pipelines for transporting high pressure natural gas around the country. To date, INGL has laid approximately 650 km of high-pressure pipelines.
  • Block valve stations throughout the system.
  • PRMS stations to reduce pressure and meter gas deliveries, located at the consumer delivery points.
  • Facilities for operations and security, to monitor and control the network.
  • Maintenance and logistics centers at several locations nationwide.

INGL Customers

Already, about half of the electricity in the country is generated using natural gas, which INGL delivers to eight large power stations owned by Israel Electric Corporation, and to independent power producers. In addition, INGL also delivers natural gas to other large industrial plants in Israel, including in the Haifa Bay area, Ramat Hovav, Mishor Rotem, Sodom, and other locations throughout the country (industrial customers include ORL, Haifa Chemicals, Makhteshim, Agan, Dead Sea Works, Mashab and others). Extension of the system to small and medium consumers is ongoing, by means of 5 new regional distribution companies which have recently been awarded licenses.

INGL Continues Its Efforts to Develop the Natural Gas Economy

Following the discovery of significant volumes of natural gas resources off the coast of Israel, the demand for electricity generation based on natural gas, and gas sector development, has increased. It is expected that the share of natural gas in the fuels for electricity generation will reach 70% in coming years. INGL continues to develop the natural gas sector, increasing the reliability of the national transmission system, to ensure a regular supply of gas to its customers. The company is working on the construction of new gas transmission systems and facilities, with an overall cost of about NIS 2 billion over the next 5 years, including the completion of the Jerusalem and Ramat Gavriel transmissions pipes, doubling pipelines in the North and the South, another export pipeline to Jordan and other sections.

Construction of Facilities from an Ecological standpoint and the Principles of Sustainable Development

The company is proud of its achievements, in terms of sustainable development, and the sustainable use of resources and technologies that allow the restoration of landscapes and regional systems, naturally and quickly. According to this principle, the company operates within guidelines established for the restoration of the environment, doing research on the area with professionals and with environment-oriented organizations, preliminary testing to locate antiquities, defining access routes, taking into account the environmental flora and fauna, stabilizing water channels, rehabilitation and care after construction, as well as other activities under the supervision of the Jewish National Fund, the Israel Nature and Parks Authority, and local authorities.

Credit Rating

The company boasts a market-leading credit rating, resulting from trust in the Israeli government and economic confidence in the development of the Israeli natural gas field. This is reflected in the high demand for privately-issued corporate bond issues to Israel’s leading financial institutions. The company is ranked by Moody’s and also by S&P.

INGL look to the future

INGL is a young company, and over the last few years has succeeded in making significant changes in Israel’s energy economy. Through its vision and professional staff, it has established a national transmission infrastructure to deliver gas throughout the country. INGL continues to look forward with the hope and belief that natural gas will contribute to the Israeli economy and provide cleaner air for its people.