Title: Minister of Energy Presents Options for Increasing Gas Exports to Prime Minister Netanyahu
Date: [Date]
Minister of Energy and Infrastructure Israel Katz will be meeting with Prime Minister Binyamin Netanyahu tomorrow to discuss the possibilities of increasing gas exports. This meeting, which will also be attended by Finance Minister Bezalel Smotrich, aims to explore potential strategies for maximizing the benefits from Israel’s natural gas reserves while maintaining energy independence.
According to sources, Katz and Smotrich have been engaged in a heated exchange of letters and messages in recent months. Smotrich has been concerned about the potential loss of Israel’s energy security, urging caution in increasing exports. On the other hand, Katz, a supporter of increasing exports, has rebuked Smotrich’s warnings. At a recent event at the Rotenberg power plant, Katz called Smotrich’s concerns “the strangest letter” he has seen in the latter’s public life.
The central question to be addressed in tomorrow’s meeting revolves around finding the right balance between increasing exports to improve Israel’s geopolitical position and ensuring energy independence. It is crucial for Israel not to become reliant on gas imports. However, determining the appropriate quota for exports is a complex matter that involves careful consideration of various factors, such as the rate of export and its impact on the local economy.
One proposal on the table is to increase the production rate from the “Tamar” reservoir from 11 billion cubic meters (BCM) to 16 BCM. This increase will enable the supply of an additional 4 BCM to Egypt, which fears a gas shortage. If approved, the total export quota for Tamar will rise from 28 BCM to 76 BCM.
Regarding the Leviathan reservoir, plans submitted to the Ministry of Energy in 2016 already included two phases of production: 12 BCM in the first phase (current rate) and an additional 21 BCM in the second phase. The partners in the Leviathan field are considering a further increase in production to 14 BCM by 2025-2027, with an additional 2 BCM supplied to the local economy.
Various options are being considered to significantly increase exports, including establishing liquefaction facilities in Israel and Cyprus, connecting a pipeline to Turkey, reviving the Istamed gas pipeline program to Cyprus and Greece, or relying on exports through Egypt.
Partners in the Leviathan field have proposed building a floating drainage facility near the rig, enabling the export of 7 BCM per year for 20 years. However, this would require a significant economic investment. The partners have requested the approval of a quota of 175 BCM over 25 years to justify the investment. A key concern in allowing such a quota is the potential impact on gas shortages and the timeline for Israel’s energy independence. According to data from “Lobby 99,” Israel could face energy independence challenges by 2038 due to a decrease in gas reserves alongside an increase in local demand.
The meeting between Minister Katz, Prime Minister Netanyahu, and Finance Minister Smotrich will likely weigh these factors and explore potential strategies to ensure both energy independence and maximize the benefits from Israel’s natural gas resources.