Clal Industries and Investments Ltd, the major shareholder in Nesher Israel Cement and subsidiary Hadera Paper Ltd is negotiating a US$1 billion natural gas supply contract with Egypt’s East Mediterranean Gas Company (EMG).
Clal Industries is negotiating two separate gas delivery deals with EMG. The first deal is with Hadera Paper. Half the gas is intended for the company’s 230-megawatt power plant, scheduled to be built on the factory’s premises, and the other half is intended to power factory production.
The second deal with EMG is for the power plant at Nesher Israel Cement Enterprises Ltd. in which Clal Industries owns 75%. The power plant already receives 900 million cubic meters of gas a year from EMG, but Nesher wants to increase the power plant’s capacity from 50 megawatts to 120 megawatts, which will double its natural gas consumption.