The terminal facility - questions and answers (Kiryat Hayim)

Energy Infrastuctures Ltd., is Israel’s national infrastructure company for the petroleum and energy sector, and is fully (100%) owned by the State of Israel. The company is responsible for meeting the requirements of the energy sector, both routinely and in emergencies. It focuses upon four main fields, including: unloading, storage and loading of crude oil and crude oil products, petroleum distillate storage (including mazut, diesel, kerosene and benzene), distribution of petroleum products to the various marketing companies and their transmission via an underground petroleum pipeline grid which links the fuel sources, the ports and refineries, to the storage sites and the final consumers: the Electric Corporation, the Defense systems, Ben Gurion Airport, distribution farms for road tankers etc.

The company called Petroleum Services Ltd., was established in January 1959, in line with a government decision, in order to purchase the assets of the Iraq Petroleum Company Ltd. (IPC) in Israel, to manage the Haifa Port fuel facilities as well as the rest of IPC’s assets. In the same government decision, the transfer to this newly established company of all IPC’s rights, previously granted to it according to the concessions and treaties contained in IPC’s Charter and Agreements Decree, was approved. To this end, an agreement between IPC, the government and the company was signed, as well as a deed of transfer according to which IPC transferred the said rights to the company.

The company is fully (100%) owned by the government. Since its inception, the company has expanded its activities in line with the goals detailed in its Memorandum of Association, has acquired additional assets and set up tanker farms throughout the country.

The company’s subsidiary – Fuel Products Pipeline Ltd. (KMD) – is fully owned and was established in February 1960, to acquire and operate the Haifa-Tel Aviv fuel pipeline (the White Pipeline) owned by the State of Israel, to distribute petroleum and all related products. Since being established, KMD has developed, set up and operated the national grid for distribution of fuel to the various storage facilities around the country.

Energy Infrastructures Ltd., and its subsidiary, KMD, are authorized as essential plants in line with the Emergency Employment Service Law 5727-1967. As such, the company’s facilities and employees are defined as essential in routine and emergency situations.

Energy Infrastructures Ltd., being of great importance to the functioning of Israel’s energy sector, invests a great deal of resources in its capabilities to maintain functional continuity.

Since Energy Infrastructures Ltd., is the national carrier of fuel to all parts of the country, including power plants, IDF bases, Ben Gurion Airport and distribution stations to gas stations in Israel, the cessation of Energy Infrastructures Ltd., operations, would mean a de facto shutdown of the country.

The tanker farm was already set up in this area by the British in 1934,well before the establishment of the State of Israel, during a period when there were no residential neighborhoods near the tanker farm. As time went on, plans for construction near the farm were set in motion, with apartments being sold in the vicinity of the farm. As a result, over the years, friction grew between the needs for urban development and the industry, until residents’ homes drew closer and closer to the company’s site. For decades, the policy makers and regulators have avoided making any sort of decision that would settle this complex issue.

However, for 18 years starting in 2000, Energy Infrastructures has been promoting the Northern Lands Project requesting that the tanker terminal farm in Kiryat Haim be relocated to a site east of the Haifa Refineries.

This plan was cut short when the Bay Innovation Project was launched.

Energy Infrastructures Ltd., agrees with the residents of the nearby neighborhood who would like the farm relocated, and knows that operating a tanker farm near a residential neighborhood is not acceptable.

Energy Infrastructures Ltd., has been working for close to 18 years to have a plan approved for moving the farm to an alternative site. However, the decision makers, policy makers, the Haifa Municipality, various planning authorities and regulators have not yet made the required decision which would finally settle this complex issue.

The company hopes that the prolonged discussions between the government ministries and the various planning entities will soon be finalized and lead to a quick and satisfactory solution for both the residents and the company.

Crude oil is unloaded from tankers from the marine link at the tanker farm, as well as crude oil that is distributed to it through an overland pipeline from Ashkelon by the Europe Asia Pipeline Company (EAPC).

The tanker farm was designed so that there would be a safe distance between each tank, in order to prevent the spread of fire. The company has installed the most advanced detection and extinguishing means in the world, at the same time continually integrating the latest technologies.

Company personnel undergo training abroad with the world’s most professional specialists in tanker farm firefighting. The company holds regular emergency drills in collaboration with the security and rescue forces, and is prepared for any scenario.

Energy Infrastructures Ltd., has been promoting the national Northern Lands Project in which it was planned to vacate the tanker farms near to populated areas in the Haifa Bay, and transfer them to an integrated and advanced farm east of the Haifa Refineries. At the same time, the company is helping in the planning of alternative sites assigned by the State of Israel as part of the Bay Innovation Project which is supposed to replace the Northern Lands Project.

Energy Infrastructures Ltd., is convinced that it is of the utmost importance to move the farm to a safe and suitable alternative site that will be able to serve the energy sector for the coming 50 years.

The removal of the existing tanker farms (approx. 900 dunams!) will facilitate the establishment of thousands of housing units, will allow the continuity of residential neighborhoods and the construction of an impressive coastal promenade.

The Northern Lands Project has been led by Energy Infrastructures Ltd., for over 18 years, with the support of the Ministry of Energy, the Ministry of Environmental Protection and the Ministry of Health, as well as with the support of municipalities from within the Haifa metropolis.

As part of the project, the company’s existing storage sites are to be relocated – the Kiryat Haim terminal, the tanker farms at Alroi, and some of the tanker farms at the fuel port - to a new farm to be built in the Northern Lands area. With the launch of the Bay Innovation Project, there were discussions about other alternatives not yet agreed upon by the State’s planning authorities.

The new farm will be modern and built bearing in mind the needs of the 21^st century, and according to the strictest safety and environmental standards.

The company takes steps according to regulatory guidelines and the strictest standards in everything related to maintaining good air quality. The company reduces the risks by adhering to the guidelines and using the best technology available.

The minister in charge of company affairs in accordance with the Government Companies Law 5735-1975, is the Minister of Energy, and the unit handling the company affairs in his ministry is the Fuel and Gas Administration.  In addition, the company has a Board of Directors that includes an internal auditor.

The Ministry of Environmental Protection and the Haifa Association of Cities have conducted several environmental monitoring tests over the past year. Some of the tests were spot checks while others took the form of comprehensive surveys taking a number of days each. All the tests were carried out while the farm was operational.

According to the TO15 Standard, the monitoring tests sampled the air around the farm fence for 24 hours and samples were sent for analysis.

No anomalies were found in the threshold values of any of the samples sent for analysis, nor were there any indications of odor hazards. In addition, the Ministry of Environmental Protection carried out an emission test on the tank roofs. Minor defects were found in a couple of tanks and these were immediately addressed. An emission survey was conducted at the farm for both tanks and pressure fittings, in which no defects were found at all.

Hereunder are the numbers for public inquiries: 09-9528503; 09-9528020; 1-800-522225