Israel to examine building GTL plant

Israel's energy ministry is exploring the option of building a gas-to-liquids (GTL) plant in Israel. The ministry said that it will assist entrepreneurs to explore that option and consider what the consequences would be for the country's energy sector.

Two years ago the ministry published a request for information for GTL in order to reduce dependence on oil in transport. In 2011 the government set a target of reducing oil consumption by 60% by 2025.

"We are working towards widening the Israeli natural gas market," the ministry director general, Sahul Meridor said in a statement. "Innovative technology of liquid fuel production from natural gas will enable the use of gas in other sectors of the economy and to increase demand for natural gas."

Increasing the use of natural gas is one of the hurdles the government has to overcome in order to ensure the development of its gas fields. But also transport fuel made from gas combusts with almost zero particulates and lower carbon emissions than do conventional refined oil products.

Tamar rig, eastern Mediterranean

(Credit: Tamar partners)

The entrepreneurs' findings will help the government to shape a policy towards GTL plant and its use. GTL products include all major fuels: gasoline, diesel, jet fuel and LPG. There are now a few thousand cars on Israel roads that run on LPG.

Last week the energy ministry announced grants totalling NIS 65 mn ($16mn) to build CNG filling stations, filling a void left by the private sector. A tender by one of Israel's public transportation companies to purchase up to 30 natural gas buses was delayed last month, because of bureaucratic difficulties in obtaining permissions for the construction of CNG refuelling infrastructure.

Ya'acov Zalel