Russian gas giant Gazprom and Delek Drilling LP, an Israeli energy partnership in the exploration, development, production and sale of natural gas, are to examine the possibilities of using natural gas as a fuel for vehicles and equipment in Israel.
Under a signed Memorandum of Understanding (MoU), a joint working group will be established to explore how natural gas fuel can be applied to road, rail and water transport and special equipment (agricultural, material-handling and other equipment). The MoU is pursuant to the MoU inked on June 7, 2016, between the Ministry of Energy of the Russian Federation and the Ministry of National Infrastructure, Energy and Water Resources of the State of Israel.
“The gas industry contributes a lot to the sustainable and ecologically responsible development of the economy. And the use of natural gas as a fuel for vehicles is one of the most important parts of this contribution. Using gas as a vehicle fuel proves that transport without pollution is possible. It is not a remote possibility but a technology available today,” said Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee.
“ The profound acquaintance and extensive capabilities of Delek in the Israeli energy market, alongside Gazprom’s intensity in the natural gas field will contribute to further development of the Israeli natural gas market in general, and in particular for natural gas based transportation. Natural gas based transportation is more efficient, cheaper and reduces pollution,” said Yossi Abu, Delek Drilling Chief Executive Officer.
First steps were taken when the Israel Ministry of National Infrastructure, Energy, and Water Resources met with a U.S. delegation and Diego Goldin, Executive Director of NGV Global, to guide the country toward the integration of compressed natural gas (CNG) in the energy sector, especially as it applies to public transportation.
Then, on June 7, 2016, the Ministry together with the Russian Ministry of Energy signed the MoU confirming, inter alia, their mutual interest in combining efforts to develop the existing and new technologies in order to promote the use of natural gas as a vehicle fuel as part of the bilateral cooperation of the two governments.