The refinery was once part of the formerly governmental company Oil Refineries Ltd. which owned both the Ashdod and Haifa refineries. As part of the effort to privatize the refining sector in country the Ashdod refinery was sold to the
Paz Oil Company in 2006. The refinery commenced operations in 1973, after three years of construction, in order to meet the needs of the Israeli market which exceeded the production capacity of the
Haifa Refinery. The decision to construct a new refinery on the sand dunes north of Ashdod was based on the following considerations: available land, geographical dispersion of refining industries due to security risks, centrally located in the heart of the country’s area of consumption, occupational opportunities for Ashdod, proximity to the
Pi Glilot fuel depot and the
Eshkol Power Station. Today, a pipeline connects the refinery to the national fuel pipeline, the crude oil
Eilat-Ashkelon pipeline and two
Israel Electric Company sea lines in Ashdod. The Ashdod Refinery is also connected to the national natural gas distribution grid. The use of natural gas significantly reduces the emission of contaminants to the environment, and is economical in energy costs. Natural gas electric and steam plants were constructed on the site of the refinery, and began operation in 2008. == Milestones ==