Israel moves to increase natural gas use

Jerusalem [Israel], June 27 (ANI/TPS): The Knesset's Economic Committee approved Monday the extension of the license of the Gas Routes Israel Company for an additional 15 years until the year 2049.

The Gas Routes Israel Company (Netivei Gaz in Hebrew) is responsible for the transmission of natural gas to the power plants for the production of electricity that operate on natural gas, as well as the largest industrial plants in Israel.

The extension of the license will allow the company to raise long-term debt to finance investments in the natural gas infrastructure in Israel. Also, the extension of the license will allow it to sign long-term contracts with transmission customers in general and with power plants in particular. The move will increase certainty and stability in the gas and electricity sectors in Israel and will allow them to prepare long-term and efficiently.

Another amendment to the law approved today by the committee is intended to allow the Minister of Energy and Infrastructure to grant a license to the company, without the need to establish a subsidiary, so that it can operate in the distribution segment in places where the Minister of Energy and Infrastructure and the Minister of Finance believe that the existing distribution company does not meet its obligations in accordance with the license granted to, and the option granted to her by virtue of the license. (ANI/TPS)