Ashdod Oil Refineries

Ashdod Refinery, also known as Ashdod Oil Refineries or Ashdod Refinery Ltd., is a petroleum-refining company and industrial complex in the northern industrial area of Ashdod, Israel, close to the Port of Ashdod. It is described as Israel’s second-largest refinery after the Haifa refinery. The facility was established to expand national refining capacity beyond what the Haifa refinery could provide and began operating in 1973 after approximately three years of construction. The refinery’s location was selected for a combination of logistical, economic, and strategic reasons. Ashdod lies near the center of Israel’s principal consumption area, allowing refined products to be distributed efficiently. The site also offered available land, proximity to the Port of Ashdod, the Pi Glilot fuel depot, the Eshkol Power Station, and major national fuel and energy infrastructure. Geographic separation from the Haifa refining complex was additionally considered useful in view of security and continuity-of-supply concerns. The refinery was originally part of Oil Refineries Ltd., the former government-owned company that controlled both the Ashdod and Haifa refineries. In the course of Israel’s effort to privatize its refining sector, the state awarded Paz Oil Company the tender to acquire the Ashdod refinery in 2006. Paz reportedly paid approximately NIS 3.25 billion for full ownership. The transaction separated the Ashdod asset from the Haifa refinery, which followed a different ownership and corporate path. Ashdod Refinery processes crude oil into fuels and other petroleum products for the Israeli market. Its infrastructure includes crude and product storage, processing units, loading facilities, pipelines, power and steam generation, and connections to national energy networks. As of 2014, the refinery was reported to have annual refining capacity of approximately 5.4 million tonnes and a Nelson complexity index of 9.8. The site covers roughly 1,100 dunams and has reported storage capacity of about 700,000 cubic metres. A workforce figure cited for the refinery is approximately 230 employees. The facility has undergone several technical and environmental upgrades. A catalytic-cracking and sulfur-recovery project was completed in 1992. Hydrodesulfurization capacity and a distillate truck-loading terminal were added in 2003, alongside an upgrade to the catalytic cracker. Between 2002 and 2005, more than US$13 million was reportedly invested in environmental protection, including emissions reduction, wastewater treatment, marine-pollution prevention, and remediation or control of groundwater, soil, and hazardous materials. The refinery was also prepared for connection to Israel’s natural-gas network. Natural-gas-fired electricity and steam plants began operating at the site in 2008, supporting lower emissions and potentially lower energy costs compared with more carbon-intensive fuels. The refinery is connected by pipeline to Israel’s national fuel-pipeline system and to the Eilat–Ashkelon crude-oil pipeline. It also has connections to two Israel Electric Corporation marine lines in Ashdod and to the national natural-gas distribution grid. These links integrate the refinery into Israel’s broader system for importing crude, distributing fuels, and supplying industrial and power-sector customers. In August 2023, Ashdod Refinery became a public company and began trading on the Tel Aviv Stock Exchange. The listing marked a further change in the company’s corporate status after its earlier state ownership and subsequent privatization. Publicly available reference material identifies the company primarily as a domestic refining and energy-infrastructure operator rather than as a consumer-facing fuel brand. Its strategic importance derives from its role in Israel’s fuel supply, its location beside major maritime and pipeline infrastructure, and its ability to convert imported crude oil into finished petroleum products.

Ashdod Refinery was developed as part of Israel’s effort to expand and geographically distribute its petroleum-refining capacity. Before the Ashdod facility was built, the Haifa refinery was the country’s principal refining installation, but its production capacity no longer adequately covered the needs of the growing Israeli market. The government therefore approved construction of a second refinery on the sand dunes north of Ashdod. Construction lasted approximately three years, and the refinery commenced operations in 1973. The Ashdod site was selected because it offered sufficient land and occupied a central position relative to Israel’s main centers of fuel consumption. Its location near the Port of Ashdod, the Pi Glilot fuel depot, and the Eshkol Power Station also created logistical and industrial advantages. Strategic planning considered geographic dispersion of refining assets important because a concentration of critical infrastructure in one location could increase vulnerability during security disruptions. The refinery was initially owned and operated within Oil Refineries Ltd., the former state-controlled company that also owned the Haifa refinery. During the 1990s and early 2000s, the Ashdod complex received investments intended to increase conversion capability, improve product quality, and reduce environmental impacts. A catalytic-cracking and sulfur-recovery unit was completed in 1992. In 2003, the site added a hydrodesulfurization unit and a truck-loading terminal for distillates, while its catalytic cracker was upgraded. Environmental investment was particularly significant between 2002 and 2005. More than US$13 million was reportedly directed toward reducing pollutant emissions, improving sewage and wastewater treatment, preventing marine pollution, and addressing groundwater, soil, and hazardous-material risks. The company also prepared to use natural gas as an industrial energy source. Natural-gas-fired electricity and steam facilities entered operation in 2008. Their use was intended to reduce emissions and improve energy economics relative to older fuel systems. A major ownership change occurred in 2006, when Paz Oil Company won the state tender to purchase the Ashdod refinery. The reported consideration was approximately NIS 3.25 billion for full ownership. The sale formed part of Israel’s broader privatization of the refining sector and ended the refinery’s direct position within the former state-owned structure that had combined the Ashdod and Haifa assets. The refinery’s physical and commercial integration developed through connections to the national fuel-pipeline network, the Eilat–Ashkelon crude-oil pipeline, and energy infrastructure in Ashdod. It is also connected to two Israel Electric Corporation marine lines and the national natural-gas distribution grid. These connections allow crude supply, refined-product distribution, and onsite energy generation to operate as part of a wider national system. By 2014, published reference material described the facility as Israel’s second-largest refinery, with annual refining capacity of approximately 5.4 million tonnes and a Nelson complexity index of 9.8. The site was reported to occupy around 1,100 dunams, with storage capacity of approximately 700,000 cubic metres. A cited employment figure was about 230 workers. On August 30, 2023, Ashdod Refinery became a public company and began trading on the Tel Aviv Stock Exchange. This represented another stage in the company’s institutional development, following its origins as a state-sector asset and its 2006 sale to Paz Oil Company. The refinery remains principally an infrastructure and industrial business serving Israel’s domestic petroleum market.

1. 2023Company becomes publicly traded

   Ashdod Refinery became a public company and began trading on the Tel Aviv Stock Exchange on August 30, 2023.

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2. 2008Natural-gas power and steam plants enter operation

   Natural-gas-fired electricity and steam plants began operating at the refinery, supporting lower emissions and improved energy efficiency.

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3. 2006Paz Oil acquires the refinery

   Paz Oil Company won the state privatization tender and acquired full ownership of Israel’s second-largest refinery for a reported consideration of approximately NIS 3.25 billion.

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4. 2003Hydrodesulfurization and distillate-loading facilities added

   A hydrodesulfurization unit and a truck-loading terminal for distillates were constructed, and the catalytic cracker was upgraded.

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5. 2002Environmental investment program begins

   A multi-year environmental program began, addressing emissions, wastewater, marine pollution, groundwater, soil, and hazardous materials.

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6. 1992Catalytic cracking and sulfur recovery completed

   The facility completed construction of catalytic-cracking and sulfur-recovery units, strengthening its ability to convert crude oil and manage sulfur-related refinery outputs.

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7. 1973Refinery begins operations

   After approximately three years of construction, the Ashdod refinery began operating to supplement Israel’s existing refining capacity and serve the expanding domestic market.

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A strategically located Israeli petroleum refiner focused on supplying the domestic market, with integrated pipeline, port, storage, power, steam, and natural-gas infrastructure.

• GasolineMotor fuels

  Gasoline is one of the principal finished petroleum products associated with the refinery’s domestic supply role. It is produced through the refinery’s crude-processing and conversion units and distributed through Israel’s fuel infrastructure for road-transport use.

• Diesel and middle distillatesMiddle distillates2003

  The refinery produces diesel and related middle-distillate products for transportation, industrial, and other energy applications. The addition of hydrodesulfurization capacity and a dedicated distillate truck-loading terminal supported the production and handling of cleaner, specification-compliant distillates.

• Jet fuel and keroseneAviation and heating fuels

  Kerosene-range products, including aviation fuel where applicable to the refinery’s product slate, are derived from crude-oil processing and supplied through Israel’s bulk-fuel infrastructure. Public reference material does not provide a separate product-level description or brand identity for these fuels.

• Liquefied petroleum gasLight petroleum products

  Liquefied petroleum gas is a typical refinery output generated from the lighter fractions of crude-oil processing. It can be handled through bulk energy infrastructure, although available reference material does not specify a separately marketed Ashdod Refinery consumer brand.

• Fuel oilsHeavy petroleum products

  Fuel oils and other heavier refinery streams form part of the range of products that can be produced from crude oil. Their use may include industrial and energy-sector applications, subject to applicable Israeli fuel specifications and market demand.

• SulfurRefinery by-products1992

  Sulfur is recovered through the refinery’s sulfur-management infrastructure. The sulfur-recovery unit, completed in 1992, supports treatment of sulfur-containing refinery streams and helps control emissions associated with petroleum processing.

• 2023Public-market listingOther

  Following its history as a state-sector asset and its privatization through the sale to Paz Oil, the company changed its public-market status.

  What changed. Ashdod Refinery became a public company and began trading on the Tel Aviv Stock Exchange on August 30, 2023.

  Aftermath. The listing made the refinery subject to public-company and exchange reporting requirements, although the available reference material does not specify the ticker or offering terms.

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• 2008Shift toward natural-gas-based onsite energyStrategy

  The refinery prepared to connect to Israel’s national natural-gas distribution network as part of efforts to reduce emissions and control energy costs.

  What changed. Natural-gas-fired electricity and steam plants were constructed and began operating at the refinery.

  Aftermath. The facility gained onsite natural-gas energy-generation capability and reduced reliance on more polluting refinery fuels for power and steam.

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• 2006Privatization sale to Paz Oil CompanyM&A

  The Ashdod refinery had been part of the former state-owned Oil Refineries Ltd., which also controlled the Haifa refinery. Israel’s refining-sector privatization program sought to transfer the Ashdod asset to private ownership.

  What changed. Paz Oil Company won the state tender and acquired full ownership of the refinery for a reported approximately NIS 3.25 billion.

  Aftermath. The transaction separated Ashdod Refinery from the former combined state refining structure and placed it under Paz Oil’s ownership.

  Reported acquisition consideration. Approximately NIS 3.25 billion (2006)

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• 2023Ashdod Refinery becomes a public company

  Ashdod Refinery became a public company on August 30, 2023, and began trading on the Tel Aviv Stock Exchange.

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1. Ashdod Oil Refineries
2. Ashdod Refinery official website