Haifa Gadiv Plant Shut Down for 17 Days Over Benzene Leaks, Losses Mount
The Gadiv petrochemical plant in Haifa has been shut down for 17 days due to high benzene emissions, resulting in millions of shekels in losses. The Ministry of Environmental Protection halted maintenance works, though national fuel supplies remain unaffected.
The Gadiv petrochemical plant, located within the Bazan oil refinery complex in Haifa, has been shut down for 17 consecutive days due to abnormal benzene emissions recorded during maintenance works. The financial damage is already estimated in the tens of millions of shekels.
The plant was initially halted on October 12 for several days, leading to the evacuation of two schools in Kiryat Ata for 24 hours over air pollution concerns. Although Bazan submitted a remediation plan and resumed operations, the Ministry of Environmental Protection ordered another shutdown on October 22. The facility has remained inactive since.
Production and Revenue Impact
Gadiv is responsible for Bazan's aromatic products derived from petroleum, serving as raw materials for the chemical, plastics, packaging, coatings, and cosmetics industries rather than fuel. Routine maintenance is conducted roughly once a decade, involving deep cleaning and component replacement. Opening the piping releases trapped hazardous gases into the atmosphere, causing the severe contamination detected by the ministry.
In 2025, Bazan reported 273 million dollars in revenue from its aromatic products segment, compared to 426 million dollars in 2024. Based on these figures, each day of shutdown results in an estimated loss of 2.3 million to 3.6 million shekels. Over the 17 days of inactivity, accumulated losses range between 55 million and 76 million shekels. As Gadiv does not produce fuel, the stoppage poses no risk to national fuel supplies.
Recent Challenges and Future Outlook
Bazan has faced multiple operational disruptions over the past year and a half. A particularly severe incident occurred at the "Am Lavi" facility, where three workers were killed by an Iranian missile strike on critical electrical infrastructure, causing damages estimated between 150 million and 200 million dollars, for which Bazan received state compensation. An additional, less critical strike hit a fuel storage tank at the "Shaagat HaAryeh" facility. According to current timelines, Bazan is scheduled to operate until 2030, after which the refinery complex will be relocated to free up land for urban expansion in Haifa.
