Eilat Ashkelon Pipeline Company


The Eilat Ashkelon Pipeline Company operates several petroleum and petroleum products pipelines in Israel, most notably the Eilat Ashkelon Pipeline. It also operates two oil terminal and depots in the country. The company was originally formed in 1968 as a 50/50% joint venture between Israel and Iran to transport crude oil from Iran to Europe. After the Iranian Revolution 1979, Israel nationalized the company. In 2015, a Swiss court ordered Israel to pay Iran $1.1 billion compensation, which they refused to pay, argueing that this were prohibited by its Trading with the Enemy Act.
The services of EAPC are: transporting crude oil and refined products, long term storage, crude oil blending, processing of liquefied petroleum gas, fuel oil, distillates and gas.

History

Crude oil pipelines

This project reversed the flow direction of Eilat-Ashkelon pipeline oil - meaning that it can now flow southwards instead of only northwards, as originally conceived when Israel consumed Iranian oil. The idea behind the project is to transport crude oil from Russia, Central Asian republics and Caucasus over the Black Sea and the Baku-Tbilisi-Ceyhan pipeline to Southern Asia and the Far East at a competitive price. The capacity and size of the Suez Canal is limited and therefore expensive.