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Israel Electric seeks mobile turbines for power plants via tender

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Israel Electric seeks mobile turbines for power plants via tender

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The Israel Electric Corp has issued a tender for the supply of mobileturbines for the production of electricity, the company said late Sunday. Thetender is part of the state-owned utility's emergency plan to deal with anexpected shortage of power in the peak summer months.

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The IEC tender is for five turbines of 25 MW each, which will run ongasoil. The cost is estimated at $125 million.

The bids are to be submitted by July 1. Israel is facing anunprecedented shortage of electricity due to the lack of natural gas supplyfrom Egypt and a faster-than-expected depletion of the Mary B field offIsrael's southern Mediterranean coast, currently the sole supply of gas tothe local economy.

The IEC has been forced to switch to gasoil and fuel oil at most ofits gas-fuelled power plants and increase the use of coal. A senior IECofficial said Monday that running the gas-based power plants on gasoil orfuel oil was far more costly and less efficient and this has furtheraggravated the situation.

Israel's Energy and Water Ministry has drawn up an emergency plan to dealwith the crisis.

--Neal Sandler, newsdesk@platts.com--Edited by E Shailaja Nair, shailaja_nair@platts.com