Key facts
- Israel's largest oil refineries in Haifa Bay suffered severe damage from Iranian missile strikes.
- Reconstruction efforts are projected to last until 2028.
- Official statements in March claimed only localized damage to a storage tank.
- Reports indicate damage to gas turbines, steam boilers, and electrical rooms.
- One oil derivatives storage tank is beyond repair.
- The refineries experienced damage in a previous conflict, resulting in employee fatalities and financial losses.
Israel's largest oil refineries in Haifa Bay have sustained significantly more damage from Iranian missile strikes than previously acknowledged by authorities, according to Israeli media reports. Reconstruction works are expected to continue until 2028.
Channel 12 News reported that the refineries suffered severe damage from two separate Iranian strikes earlier this year, contradicting earlier claims by Minister of Energy Eli Cohen and Bazan, the operating company, that no material damage had been recorded. Bazan had stated in March that only a distillate tank roof sustained 'localized damage' and that all facilities remained operational.
However, reports citing an official interior ministry report indicate damage to gas turbines, steam boilers, electrical rooms, and other auxiliary systems that were not publicly disclosed. The Ministry of Interior has reportedly approved large-scale reconstruction. One oil derivatives storage tank struck in March is considered beyond repair.
The refineries also sustained damage last year, during a 12-day conflict with Iran, which resulted in the deaths of three Bazan employees when Iranian missiles reportedly penetrated the Iron Dome system. At that time, Bazan estimated losses between $150-200 million, while Israeli officials assured that fuel supplies would not be affected.
The Bazan refineries are strategically vital, producing approximately 26,000 tonnes of oil products daily and processing about 9.8 million tonnes of crude oil annually. Built during the British Mandate, they became a recognizable landmark after the establishment of the State of Israel. In recent years, Israel has imposed strict military censorship on details of damage from Iranian strikes, with +972 Magazine data showing a significant increase in censored articles since 2024.