Since 2009, Israel has been on a hot streak of discovery. Sitting 15 miles off the Mediterranean coast of Israel lies a vast resource of natural gas fields. Beginning with the Tamar natural gas field in 2009 and continuing with the Leviathon field in 2011, the Tanin field in 2012, the Karish field in 2013, and the most recent Daniel filed in 2016. A country that once reported natural gas reserves equivalent to the number of glaciers in Kenya, now finds themselves with an abundance of reserves.
The Tamar field is now averaging production in the realm of 1.2 billion cubic feet per day (Bcf/day). The Leviathon filed is expected to come online in 2019, pending any hiccups in development. However, the Leviathon field will require an estimated $6 billion to develop.
Israel’s Government Develops Investing Framework
This week, the Israeli government announced the approval of a general framework that would encourage foreign investors to participate in the development of the fields.
In the past, Israel imported most of its natural gas from Egypt through the Arab gas pipeline. This pipeline has been repeatedly bombed in Sinai by the Bedouin group since the summer of 2012, and the tables could soon be turning. Natural gas could begin flowing the other direction into Egypt as demand is growing in that country.
Currently, the Tamar field and its 1.2 billion cubic feet per day feeds 40% of Israel’s power generation. The Leviathon field is expected to produce 2 billion cubic feet per day when it clears regulatory hurdles.
The result: energy independence for Israel, with extra natgas to export to neighbors like Turkey, Cyprus, Greece, or Jordan.
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