The Israeli Ministry of Energy and Infrastructure is actively pursuing a plan to augment the supply of natural gas from the Tamar natural gas reservoir by approximately 6 BCM (Billion Cubic Meters) per year, starting in 2026. This ambitious undertaking signifies an approximate 60% increase in the reservoir's production capacity as compared to its current capabilities. The primary goals are to bolster the energy security of the State of Israel and to stimulate competition in the natural gas industry.
The expansion is presently pending a final investment decision by the partnership overseeing the reservoir. The plan is to be implemented by adding a third transmission line from the Tamar wells to the production rig, coupled with an upgrade to the existing equipment within the production system.
Israel to Increase Natural Gas Exports to Egypthttps://t.co/yjXWdwZVgl
ā The World Monitor (@tworldmonitor) August 24, 2023
Professionals at the Ministry of Energy and Infrastructure have adopted a conservative approach, aiming to preserve natural gas until the year 2048, extending five years beyond the previous government's decisions which mandated preservation until 2043. According to expert estimations within the ministry, even after granting additional export permissions, there will be an ample supply of natural gas to meet the needs of the local economy in the coming years, owing to the aforementioned expansion.
Roughly one-third of the planned increase in production capacity is earmarked for the local market, projected to provide 15-25% of Israel's existing natural gas consumption. Should an emergency arise, there is provision to divert all of the additional production to the local economy, following the guidelines of the permit.
Israel to expand natural gas exports to Egypthttps://t.co/5tw3vI11iY
ā The Cradle (@TheCradleMedia) August 24, 2023
The issuance of an export permit to the relevant companies, amounting to 3.5 BCM per year, is contingent upon the production expansion. This expansion will benefit the local economy by increasing the existing natural gas consumption by approximately 15-25%.
Included in the plan is the approved possibility of exporting a total of 38.7 BCM to Egypt over roughly 11 years. This export approval was granted under the comprehensive framework set by government decisions and in consultation with the Director of the Natural Gas Authority. Additionally, the approved export amount can be augmented by about 0.5 BCM, in accordance with evaluative tests related to the anticipated increase in production from all reservoirs within the economy in the near future.
Israeli energy minister said #Israel would boost natural gas production from its offshore Tamar field and increase exports to #Egypt, which is contending with rising demand and falling output. Catch: Production increase to start in 2026 https://t.co/wmgfFVWbCx
ā Eduard Cousin (@EduardCousin) August 24, 2023
Not only does the export opportunity financially facilitate investment in production expansion, but it is also expected to generate billions of dollars in revenue for the State of Israel. Furthermore, it will strengthen energy ties with Egypt and neighboring countries, thereby reinforcing Israel's geopolitical standing in the region. This broad strategy underscores Israel's commitment to energy security, economic development, and regional collaboration, laying the foundation for continued growth and stability.
