Israel plans $5–6 billion relocation of Haifa oil refinery under new energy strategy

Israel is considering relocating the BAZN oil refinery from Haifa to the country’s south and establishing a hybrid facility there as part of a new strategy aimed at strengthening energy security through 2040.

The Fuel and Gas Authority of Israel’s Ministry of Energy published a strategic study outlining the country’s fuel sector requirements and drawing lessons from recent wars, Caliber.Az reports via Israeli media.

The study recommends maintaining independent domestic oil refining capacity and proposes using approximately $9 billion in revenue from the carbon emissions tax to finance the relocation. The move is estimated to cost between $5 billion and $6 billion.

Energy Minister Eli Cohen said Israel had experienced no resource shortages despite attacks on strategic facilities during the war.

He added that the new strategy covers the entire fuel supply chain, including imports, ports, storage, transportation and domestic refining.

By Sabina Mammadli