In 2023, Israel's energy sector witnessed a significant milestone, with natural gas exports royalties surging to a record-breaking 2.19 billion Shekels ($595 million), thanks to a 25% increase in exports to neighboring Jordan and Egypt. This achievement underscores Israel's growing prominence in the natural gas market, with total royalties from this sector now exceeding 25 billion Shekels ($6.7 billion).
The Ministry of Energy and Infrastructure highlighted a robust growth in natural gas production, which rose by approximately 13.9% from the previous year. This increase is particularly notable given the competitive dynamics introduced by the new Karish (Shark) gas field. The Karish field's inaugural production year brought in about 390 million Shekels ($107 million) in royalties, with a significant portion derived from domestic natural gas production, emphasizing its role in enhancing Israel's energy independence and market competitiveness.
Egypt, Jordan dependence on Israeli gas increases despite war https://t.co/jFNVuck665 Israel is positioning itself as a regional energy hub and has also committed to supply natural gas to Europe, which has been diversifying away from Russia since its invasion of Ukraine
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However, the entry of Karish as an additional producer has led to a slight decrease in the domestic production shares of the Tamar and Leviathan reservoirs, Israel's two largest gas fields. This shift reflects the evolving landscape of Israel's natural gas market, aimed at fostering a competitive and sustainable energy sector.
Energy Minister Eli Cohen has hailed this development as a testament to the strength of Israel's natural gas industry and its strategic significance. The surge in exports to Egypt and Jordan not only bolsters Israel's economy but also contributes to regional stability, reinforcing Israel's position as a strategic energy partner in the Middle East.
Looking ahead, Israel is poised to expand its role on the global energy stage, with plans to supply natural gas to Europe as part of the continent's efforts to diversify its energy sources away from Russia in the wake of the Ukraine conflict. Discussions are underway to explore export expansions through Egyptian liquefaction facilities or the establishment of local processing plants, signifying Israel's commitment to becoming a key player in international energy markets.
"The dramatic growth in natural gas exports to Egypt and Jordan proves just how much the natural gas market is a strategic asset for Israel and helps regional stability," Israel's Energy Minister Eli Cohen said in a statement.https://t.co/EhxtoxpfEn
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The offshore Leviathan field, managed by Chevron alongside two Israeli companies, played a pivotal role in this growth, supplying substantial quantities of natural gas to Egypt and Jordan. Despite facing production challenges, such as the temporary halt in operations at the Tamar field near the Gaza Strip during military engagements, Israel's natural gas sector has demonstrated resilience and adaptability.
The discovery of significant natural gas reserves in the eastern Mediterranean over a decade ago has transformed Israel into an energy powerhouse, with production commencing in earnest in 2013. The record royalties collected in 2023 mark a pivotal moment for Israel's energy sector, contributing to the establishment of a sovereign wealth fund designed to manage the influx of national wealth and prevent economic overheating. Despite initial delays, the fund commenced operations in 2022, with projections indicating substantial growth in the coming years.
2023 Saw Record Revenues from Israel’s Offshore Natural Gas Fields - @JewishPress - https://t.co/aiVG4JDMhh pic.twitter.com/GoBRAYNtap
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This remarkable progress in Israel's natural gas sector not only enhances the country's economic stability but also strengthens its strategic partnerships, contributing to a more secure and prosperous future for the region.
