Can Israel play a role in easing Europe's demand for Natural Gas? The country is banking on it, literally. Israel is one of the latest countries to develop an extensive natural gas program. One advantage is that natural gas is significantly less polluting than fossil fuels and where many say the future of energy lies, another benefit is the financial boost to Israelโs government.
According to data presented by the Royalties Division at the Ministry of Energy, it appears that in the first half of 2022, there was a significant hike in revenue, amounting to approximately 48% in the total royalties collected from the natural gas reservoirs, which now stand at approximately 824 million shekels.
Israel's natural gas production soars 22% amid plans to boost exports to Europe | Business Insider Africa https://t.co/EzOkU5V6rD
โ PwC_EU_Services (@PwC_EU_Services) August 25, 2022
The new data should be compared to the first half of 2021, where the total royalties were approximately 557 million shekels. The increase in royalties is mainly due to the record natural gas production from the Leviathan and Tamar reservoirs in the first half of 2022. Another aspect of the revenue increase is connected to dollar exchange rates.
The royalties collected from the Leviathan reservoir amounted to approximately 453 million NIS, reflecting a significant increase of approximately 27.5% compared to last year. The volume of exports constituted about 68% of the production of the Leviathan reservoir. In comparison, the volume of royalties originating from exports constituted about 77.4% of the total royalties due to higher export prices.
Israel's natural gas production soars by 22% amid plans to boost exports to Europe
โ East Med Oil Gas (@EastMedOilGasN) August 25, 2022
๐https://t.co/SpNhsfmTBC#Israel #Europe #Gas pic.twitter.com/8UEPYjZbPm
The Minister of Energy, Karin Elharar, stated that "the significance of increasing the state's revenues from natural gas royalties by about 50% in the first half of 2022 is to increase the money invested in state assets. This year a record was broken in the production of natural gas from Leviathan and Tamar reservoirs, which will is expected to be broken again when natural gas production begins from Masada and Harish, which is expected soon. The natural gas that is produced is intended first and foremost for the local economy, but also export, and some of it will even be sold in the future to the European Union ".
Israel again looking for more revenue from gas and electricity export.#Israel #Energy #naturalGas #electricity #EUhttps://t.co/RLoUjHdUME
โ Ami Vider ๐ฎ๐ฑ ืขืื ืืืืจ (@AmiV2) June 14, 2022
The European Union is facing a potential energy crisis, with Germany and many others joining, promising to disengage from Russian energy by the end of 2022.
