The global energy crisis, which began directly with Russia's invasion of Ukraine and restrictions on the export of natural gas from the country, led to a surge in demand for sources of natural gas that are not from Russia. Among the biggest gainers are the partners in the Israeli Leviathan natural gas reservoir, which brought in $2.5 billion in 2022 revenue, 28% more than in 2021. The Leviathan reservoir is owned by New-Med Energy, a merger of Delek Drilling, Chevron, and Ratio.
The surge in reservoir revenues is due to an increase in the average price per unit of natural gas, and an increase in the quantity sold. The average price increased in 2022 by 22% compared to 2021, so that a unit is now $6.28 per MMCF unit. The quantity sold increased by 7% to 11.4 BCM.
President of the International Gas Association: "Israel will be able to supply up to ten percent of Europe's natural gas supply."
— Ben D’Israel (@BenDIsrael1) March 16, 2023
🇮🇱✌️🇮🇱 https://t.co/eaguy4fM1j
Also, the demand for natural gas that is not from Russia, in addition to the increase in proven reserves in the reservoir, led to an increase in the value of the reservoir by 10% to 12.5 billion dollars. In natural gas reservoirs, it is not possible to know in advance the exact amount of natural gas in the reservoir; therefore it is customary to divide it into three levels, proven amount, highly probable amount, and possible reserves.
As the production of natural gas in the reservoir progresses, the amount of natural gas can be estimated more accurately, now the amount of natural gas has increased by 16% in the Leviathan reservoir, to 619 BCM.
Due to the profitability of natural gas exports, for which the partnership receives higher revenues than the price on the local market, the partnership wants to increase the annual production to 13.7 BCM per year, with an investment of 562 million dollars, starting at the end of 2025.
Bibi literally made Israel richer and more powerful, while Lapid and Bennet did absolutely nothing in those regards, yet leftists still don't appreciate what Bibi does for them too.
— Documenting Israel (@israelmuse) March 15, 2023
Show the man some damn respect you childish arrogant ungrateful brats.https://t.co/82dxW6G65R pic.twitter.com/3UPBw3RoC7
At last week's conference of the Institute for Energy and Environment, The Energy Minister, Israel Katz, said that these days the ministry is examining the requests of the gas partnerships to increase the export quotas. These requests come despite widespread criticism of many parties in the Israeli market against increasing exports, including the chairman of the system management company Sami Turgeman and the Private Electricity Producers Forum. Regardless, the new natural gas industry being developed in Israel is yet another sign that the Israeli economy is still maintaining a positive growth trend, despite claims that the Netanyahu-led right-wing government is deterring investors
