Supergaz and Tnuva sign an agreement for the supply of compressed natural gas (CNG)

Supergaz Co., from the Granite Carmel Group, has signed an agreement to supply natural gas with Tnuva. The estimated cost of the agreement is about 70 million shekels, under the agreement Supergaz will supply and deliver compressed natural gas (CNG) produced under the "Tamar" license, and compressed at the Supergaz compression facility at Alon Tavor, for use by the Tnuva dairy at Tel Yosef, and the Sunfrost plant in Migdal Haemek.

These agreements join a long list of agreements to supply natural gas using compressed natural gas (CNG) and through the distribution network that Supergaz signed with many leading industrial customers in Israel.

For purposes of supplying the gas to the Tnuva dairy at Tel Yosef, the natural gas will be compressed at the Supergaz compression facility at Alon Tavor. After the gas is compressed, it is transported by tankers to the dairy. A dedicated facility will be set up at the dairy for unloading gas from the tankers, reducing the gas pressure and pumping it to the plant. Additionally, Supergaz will carry out the conversion of all the facilities at the dairy to using natural gas.

The natural gas supplied to the dairy replaces fuel oil, which the dairy has used until now. Making the transition to natural gas will save the dairy tens of percent of its annual energy costs. Switching to natural gas also has environmental consequences that significantly reduce the level of environmental pollution created by the dairy.

According to Eyal Hankin, CEO of Supergaz: "Supergaz Co. is a pioneer in the field of compressed gas (CNG) for industry in Israel. Supergaz has set itself a goal of leading the introduction of the use of natural gas among industrial customers in Israel, including through the unique solution of the supply of compressed natural gas. Establishing the compression facility at Alon Tavor, the first of its kind in Israel, is at an advanced stage and the installation will start providing compressed natural gas to customers in September this year.
Accordingly, Supergaz signed agreements with a number of significant leading customers in Israeli industry for the supply of compressed natural gas in their factories. "Supplying and transporting compressed natural gas is the ultimate solution to enterprises which will be reached by the natural gas distribution network in only a few years. We are making natural gas accessible today, for the benefit of companies and of course the benefit of the environment and the end consumer".

According to Eyal Malis, Deputy CEO of Tnuva and CEO of the dairy concern: "Signing the agreement is part of a wide-ranging step that began four years ago, to switch all Tnuva plants using fuel oil to using natural gas. The Alon Tavor Dairy, the Rehovot Dairy, and the Migdal Haemek plant are already in advanced stages of switching to the use of natural gas instead of fuel oil. Now, the Tel Yosef dairy – the dairy supplying yellow cheese and butter products and the Sunfrost factory will switch to using natural gas.

In addition to the economic advantages of the step, the transition to natural gas matches the Tnuva policy of improving air quality around our factories and integrates with the overall environmental policy of the company".