In a surprise move, the Energy Ministry is working to overturn a 2022 government decision to close the Bazan oil refinery in northern Haifa and instead shift the complex to southern Israel.

A draft for a revised government decision seen by The Times of Israel says that the importance of energy independence and preserving Israel’s ability to produce its own petrochemical products and not be reliant on imports has been underlined by 30 months of war.

An Energy Ministry spokesman confirmed the plan to move Bazan to the industrial and mining hub on the Rotem plain. Noting that the plain was far from residential areas, he said that relocating the complex would help the Haifa metropolis to develop, create quality jobs in the eastern Negev and optimally meet the needs of the energy sector.

The draft document makes no mention of costs. An analysis of four options for Bazan, carried out several years ago for the government by the international management consultancy McKinsey, recommended permanently closing the complex, saying that relocating it would represent a poor return on investment.

The draft document envisages a hybrid system that will combine local production with imports.

A second, smaller refinery is located in the southern city of Ashdod, and there are no plans to close it.

The draft says Israel must avoid relying on imports of strategic products and avoid risking supply chain delays.

It goes on to note that many refineries are now producing cleaner products, such as sustainable aviation fuel,........

© The Times of Israel