In a striking testament to Israel’s meteoric rise as a regional energy powerhouse, the country’s natural gas exports surged to 13.2 billion cubic meters (BCM) in 2024, up from 11.6 BCM in 2023, according to the latest report from Israel’s Natural Gas Authority. This 14% year-over-year increase isn’t just a continuation—it’s a confirmation of a profound transformation that began with the activation of the Leviathan field in December 2019 and accelerated with Karish field operations in October 2022.

Since 2021, Israel’s gas exports have skyrocketed by an eye-watering 86%, signaling the country's irreversible pivot from energy-dependent to energy-dominant. Nearly half of all Israeli gas production—49%—is now exported, while 51% powers the domestic economy.

Egypt and Jordan: Hooked on Israeli Gas

Israel’s main customers are its regional neighbors Egypt and Jordan, whose growing reliance on Israeli gas is fast becoming a cornerstone of Middle Eastern energy geopolitics.

• Egypt, via the EMG pipeline and through Jordanian transmission lines, currently imports a staggering 10 BCM annually—more than double the amount it purchased just three years ago.

• Jordan consumes an additional 3.1 BCM each year, feeding power stations and industrial infrastructure.

Forecasts from the Natural Gas Authority predict sharp increases in demand, especially from Egypt, which continues to position itself as a regional gas hub by re-exporting some Israeli gas as LNG to Europe. As regional energy appetites grow, Israeli gas is becoming indispensable—both as a fuel and as leverage.

Based on available data up to 2024, the Arab countries likely trading with Israel in 2025 include:

1. UAE: Trade neared $3 billion in 2023, with 8% growth in early 2024.
2. Egypt: Major gas supplier, with $1.664 billion in exports in 2024.
3. Jordan: Trade showed mixed trends,…

— Grok (@grok) May 27, 2025

Massive Revenues Fuel Israeli Sovereign Wealth Fund

The financial implications of this export surge are enormous. Israel is reaping multi-billion shekel windfalls through:

• Royalties paid by gas producers

• The excess profits tax, channeled directly into the Israeli Citizens Fund (Israel’s sovereign wealth fund)

This financial bounty strengthens Israel’s fiscal position, funds social programs, and supports future national projects. The gas fields are not just geological treasures—they're strategic assets reshaping the nation's financial future.

#Israel - Services exports rise by 12.6% y/y sa in March

Rise is only partially backed by lower basehttps://t.co/8qMedAe7HM#EmergingMarkets pic.twitter.com/aODhKwsLQo

— EmergingMarketWatch (@EmergingMWatch) May 29, 2025

Strategic Debate: Export vs. Energy Security

But this booming success comes with sharp domestic debate. Critics warn that over-exporting could compromise Israel’s long-term energy security. The Dayan Committee on Natural Gas Policy has become a battleground between:

• The Ministry of Energy and Infrastructure, which champions current export levels, citing regional influence and economic gain.

• The Ministry of Finance, which urges greater conservation of gas for Israel’s own future consumption.

This policy rift underscores a fundamental question: How much is too much when it comes to exporting Israel’s strategic energy reserves?

Powering Israel: Electricity and Industry

Domestically, natural gas fuels 80% of Israel’s electricity production, making it the linchpin of the national power grid. The rest powers critical industrial sectors.

To meet growing demand, Israel Natural Gas Lines has expanded its pipeline infrastructure significantly:

• 729 kilometers of pipelines by the end of 2024, up from 662 km in 2023 and just 414 km in 2020—a near doubling in four years.

• In Jerusalem, where a local contractor failed to deliver, the national company reclaimed control to ensure proper connectivity.

This expansion signals Israel’s commitment to a robust, gas-powered infrastructure, even as debates continue over its export strategy.

Price Stability Amid Global Volatility

While Europe battles energy crises and surging prices, Israeli consumers enjoy rare price stability:

• Gas in Israel has remained steady at $4.5 per thermal unit since 2022.

• In Europe, the price closed out 2024 at $14.2.

• In contrast, the U.S. saw similar stability at a lower $3 per unit, thanks to its vast local production.

This price consistency in Israel directly keeps electricity costs down and shields consumers from global energy turbulence. It’s a quiet but powerful advantage for the Israeli economy.

Conclusion: Energy Superpower in the Making

From a nation once dependent on imports to a country that now powers its neighbors and profits handsomely, Israel’s natural gas story is a masterclass in energy strategy, technological investment, and regional foresight.

But with opportunity comes responsibility. As Israel basks in the glow of economic success, it must carefully weigh short-term profit against long-term sovereignty and sustainability.