Israel Revisits Plan to Relocate Haifa Bay Oil Refineries Amid Security Concerns
Five years after an interministerial task force recommended relocating the Bazan oil refineries from Haifa Bay, the Israeli government is reconsidering the plan by forming a new task force. Ahead of the October 27 elections, Professor Avi Simhon, head of the National Economic Council, is pushing to revive the flagship initiative to clear the petrochemical plants by 2029, despite widespread recognition that the original timeline is unrealistic. The new interministerial team, led by Simhon, will assess necessary steps to meet the government’s 2022 decision to shut down Bazan and transform Haifa Bay into a metropolitan area with residential, commercial, and clean industrial zones.
The renewed effort is driven by heightened geopolitical tensions in the Middle East, particularly following recent conflicts with Iran. Bazan’s vulnerability was underscored by missile strikes during the October 7 war and subsequent clashes, which disrupted operations and caused fatalities. The task force will incorporate updated national security scenarios and consult with agencies including the National Emergency Authority, National Security Council, and the military. They will also address delays in constructing fuel storage facilities critical to the transition away from local refining.
A recent report from the Haifa Bay Development Authority highlighted significant project delays, with only a fraction of the required work packages ready for funding. Energy Minister Eli Cohen has proposed relocating Bazan to the Rotem Plain near Dimona, complicating the original plan. Meanwhile, State Comptroller Matanyahu Englman emphasized Bazan’s role in Israel’s energy independence and criticized the government for not fully assessing the impact of its closure on energy infrastructure. Bazan, controlled by Idan Ofer, opposes the shutdown, arguing that reliance on imported fuels amid global boycotts is a risky strategy.
The new task force, which includes representatives from energy, finance, defense, transportation, environmental protection ministries, the military, and planning authorities, will work over the next six months to reconcile conflicting views and attempt to restore the original schedule. External consultants will support the process. The government faces a complex balancing act between security imperatives, economic feasibility, and urban development goals as it reevaluates the future of Haifa Bay’s petrochemical industry.
