Israel Natural Gas Lines Ltd.

Israel Natural Gas Lines Ltd. (INGL), a government company established in 2003, is responsible for the construction and operation of the national natural gas transmission system. In 2004, the Minister of Energy granted the company a 30-year license, under the Natural Gas Market Law. This project is of great importance to the Israeli economy for two primary reasons: first, for its role in ensuring energy independence and strengthening Israel’s geopolitical position and second, for its contribution to the   improvement of the environmental quality and reduction of air pollution, in line with international standards. INGL’s construction and operation of the natural gas transmission system adheres to strict international standards, utilizing advanced technological tools, complexed logistical frameworks and a wide range of international and local suppliers, contractors, and consultants.

As we celebrate the 20th anniversary of the INGL’s founding, which marked the start of the ‘natural gas revolution’ in Israel, the substantial impacts for the State of Israel are now clearly visible.

INGL operates with a long-term strategic plan that anticipates future needs, fostering both innovation and growth.

As part of this strategy, the company focuses on the following key areas:

Maintaining its position as a leading player in the energy market while continuing to expand the transmission system to meet future demands.
Prioritizing meticulous and effective risk management across all operations, with continuous risk mitigation efforts.
Ensuring financial strength and responsible debt management.
Expanding exports as a primary driver of growth.
Developing and promoting human capital in line with the company’s strategic goals.
Supporting the Ministry of Energy’s policies for reducing emissions, including advancing the future hydrogen economy.

Approximately 70% of the electricity in Israel is produced using natural gas, which INGL supplies to the seven major power stations of the Electric Company and to private electricity producers such as Dorad, Dalia, OPC (Rotem and Hadera), Adeltech (Ramat Negev Energy, Ashdod Energy), Tzafit Orot Yosef, RPIC (Sorek, Ashkelon, Alon Tavor, Ramat Gabriel), IPM Beer Tuvia, Tzafit Alon Central Energy, and Tzafit MRC. Additionally, INGL delivers natural gas to some of the largest industrial plants in Israel, located in Haifa Bay, the industrial areas of Ramat Hovav, Mishor Rotem, and other locations: Bazan, Paz Oil, Haifa Chemicals, Adama Makhteshim, Adama Agan, Dead Sea Works, and more. The circle of users continues to expand by connecting regional networks for natural gas distribution, additional private power stations, and new customers from the industrial sector, as well as significant natural gas exports to Jordan and Egypt.

Between 2017 and 2019, the company completed the construction of two natural gas export lines to Jordan—one in the southern Dead Sea region to supply Jordanian industrial plants, and the other in the Beit She’an area to connect the Israeli transmission system to Jordan’s network. Today, most of Jordan’s electricity is generated from natural gas sourced from Israeli fields.

INGL is executing the Ministry of Energy’s policy on exporting surplus natural gas, including the planning and development of export facilities and hundreds of kilometers of new natural gas pipelines both onshore and offshore. These new infrastructures will not only increase state revenues from natural gas royalties but also accommodate future natural gas discoveries in Israel’s economic waters.

The transmission system serves as the exclusive export route to neighboring countries, strengthening geopolitical ties and boosting national revenues.

The natural gas transmitted by the company is currently regarded as one of the most affordable and cost-effective energy products in the Israeli market. Its use has reduced electricity production and industrial energy generation costs by tens of percentage points.

Over the past decade, Israel’s economy has saved a cumulative 316 billion ₪ due to the use of natural gas. This includes approximately 126 billion ₪ in energy costs and an additional 190 billion ₪ from reductions in air pollution and greenhouse gas emissions (according to the BDO 2023 report).

In line with the Ministry of Energy’s plan to wean Israel off polluting fuels, a project has been initiated to convert coal-fired units to natural gas. According to the plan, four units located at the coal-fired power station in Ashkelon (Rutenberg Station, approximately 2,200 megawatts) and two units located in Hadera (Orot Rabin Station, approximately 1,100 megawatts) will be gradually converted by the years 2025-2026.

The company has connected the first unit at Rutenberg and is set to complete the connection of additional units (2-4) according to the timeline outlined in the transmission agreement with the Electric Company and the Ministry of Energy’s plan. Additionally, the company has connected to the natural gas transmission system turbines 70 and 80 at Orot Rabin, which replace coal-fired units 1-4, and is advancing the connection of additional units 5 and 6.

On May 30, 2018, the company published a prospectus for the registration of trading of its bonds (Series D) and became a reporting company on the main list of the Tel Aviv Stock Exchange as of June 7, 2018. The company is rated by the rating agency S&P Maalot with a rating of ilAAA/negative. The company’s bond series are rated by Maalot with a rating of ilAAA. The bond series of the company are also rated by the rating agency Midroog with a rating of Aa1 with a positive outlook.

INGL is a relatively young company that has sparked a major revolution in the energy sector since its inception. Through vision, dedication, and a professional team, it has established a national transmission system that distributes gas across the country.

INGL continues to push forward, exploring new initiatives and opportunities, while recognizing the critical importance of natural gas to the nation’s economy, its energy independence, and the reduction of air pollution. At the same time, the company remains committed to advancing the renewable energy sector.

The company takes pride in its significant achievements in sustainable development, efficiently utilizing resources and technologies to enable rapid and natural landscape rehabilitation, as well as the nurturing of system areas. Operating under principles of environmental restoration, the company collaborates with professional bodies and environmental organizations to conduct field research, perform preliminary checks for archaeological discoveries, and define access routes with consideration for local flora and fauna. Additional efforts include stabilizing river channels, rehabilitating and nurturing areas post-construction, and coordinating activities with KKL-JNF, the Israel Nature and Parks Authority, and the river authorities.