John Wood Group In Talks For Israel Power Plant Build -Platts

29th Jul 2010 12:06

LONDON (Dow Jones)--John Wood Group (WG.LN) is in talks with Israel's Dorad Energy to replace Turkey's Zorlu Enerji (ZOREN.IS) in a project to build Israel's largest private power plant, Platts Commodity News reported Thursday citing Israeli energy industry sources. The 820 megawatt plant located in Ashkelon will run on natural gas, Platts said, adding the value of the project is estimated at $1.2 billion. Wood Energy, a subsidiary of John Wood Group, is expected to replace Zorlu, which owns the engineering, procurement and construction company that was selected to oversee the project, said Platts. Zorlu has a 20% stake in Dorad. The other partners are the Eilat to Ashkelon Pipeline Company, A. Dori Engineering and Edeltech. The value of the project is estimated at $1.2 billion, Platts reported. The move is in response to the deterioration of relations between Israel and Turkey following Israel's May 31 commando raid on a Gaza-bound flotilla, Platts said. Wood Group shares at 1039 GMT up 3 pence, or 0.8% at 367.9 pence in a slightly higher FTSE 250 market--up 0.8% -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 29, 2010 07:06 ET (11:06 GMT)