It is located in the industrial zone in the northern part of the city, nearby the Port of Ashdod.

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 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.

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.