Limited Window of Opportunity: Israel Thinking of Rolling Back Gas Export Limits

Ari Rabinovitch
Thursday, June 3, 2021

Israel is considering rolling back export limits on natural gas, allowing energy companies to sell more abroad before demand wanes in the global market, according to a draft government report.

Fewer restrictions could attract more energy groups to explore Israeli waters, ensuring the country receives tens of billions of dollars in taxes and royalties, said a panel that recommends export policy.

Huge gas reserves discovered in the eastern Mediterranean over the past 12 years have turned Israel, a small market long-reliant on imported fuel, into an energy exporter.

It set limits around a decade ago on how much could be sold abroad, earmarking nearly 60% of reserves for domestic use. Israel already sells gas to Egypt and Jordan and is looking to expand into European and Asian markets.

Noticing a global shift away from fossil fuels, the committee determined a need to ease the regulation.

"There is a limited 'window of opportunity' to export natural gas," it said in a preliminary report seen by Reuters, giving a timeline of about 20-25 years before the market weakens.

It will also be harder to get companies to come and develop new fields - a process that takes about 10 years - the farther along the timeline, it said.

"If the policy (of limiting exports) is not changed, there is a real risk of Israel's natural gas resources not be realized and that it will lose significant income," the report said.

Whether to roll back the quota, and by how much, will be up to the government to decide.

There is already opposition from the country's Environmental Protection Ministry, which said the proposal "will lead to the dangerous, unbridled and irresponsible development of the gas and oil reserves." 

(Reporting by Ari Rabinovitch; Editing by Kirsten Donovan)

Categories: Energy Middle East Industry News Activity Gas Mediterranean Sea

Related Stories

Woodside Finds South Korean Partners to Advance LNG Value Chain

PTTEP Hires Energy Drilling’s Rig for Southeast Asia Offshore Job

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Yinson Production Closes $1B Investment to Drive Further Growth

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

French Oil Major Acquires Interests in Multiple Blocks in Southeast Asia

Woodside to Shed Some Trinidad and Tobago Assets for $206M

Current News

EnQuest Acquires Harbour Energy’s Vietnamese Assets

Woodside Finds South Korean Partners to Advance LNG Value Chain

Valeura Makes Progress with Multi-Well Drilling Campaign in Gulf of Thailand

Santos and QatarEnergy Agree Mid-Term LNG Supply

PTTEP Hires Energy Drilling’s Rig for Southeast Asia Offshore Job

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com