Filenews 24 August 2022
Israel's gas production rose by 22% in the first half of the year as the Jewish state's government plans to increase exports to Europe, where the worst energy crisis in decades is underway, as reported by Bloomberg agency.
Production rose to 10.85 billion cubic meters from year to year to year until June, with exports to Israel's neighbours rising by 35% to 4.59 billion cubic metres, according to the Israeli energy ministry. Much of the increase is due to production from the Tamar and Leviathan reservoirs in the eastern Mediterranean.
Allowances for natural gas, minerals and fees increased by about 50% to 829 million shekels ($253 million), with almost all of them coming from the gas.
Israel is increasing its production as European countries search the world for natural gas, with energy prices on the continent at record levels. The European Union is moving away from its main supplier, Russia, after its invasion of Ukraine, while Moscow has also restricted supplies, leaving buyers looking for alternatives ahead of winter.
In June, Israel signed a memorandum of understanding with Egypt and the EU aimed at boosting regional production and gas exports. The gas will be sent to Egypt, which already receives most of Israel's gas exports, and will then be re-exported to the bloc of 27. The initial flows under the agreement are not expected to be significant, but could provide Europe with some of the gas it needs, as Israel's production will increase further in the coming years.
However, Israel's nascent gas industry has changed the game for the country, having generated nearly 10 billion shekels in revenue from state coffers since 2004. The discoveries off its coast in the Mediterranean have led the country on the path to greater energy independence, reshaping regional economic ties and helping the country in the field of transition to renewable energy sources (RES).
In recent months, these ambitions have faced regression, with neighbouring Lebanon opposing Israel's decision to move a floating gas platform to the Karish deposit, near the disputed maritime border between the two countries. The us-sponsored talks between the two sides have so far failed to lead to a solution.
Israel's Energy Minister Karine Elharrar said increased production in the first half of the year will help Israel sell its gas to the EU as part of the trilateral deal, adding that production will likely continue to expand, especially when the Karish drilling rig starts operating.
Energean, which owns the rights to the Karish deposit, is on track to start production there by the end of September, according to a spokesperson, who added that the company has confidence in the Israeli government's security assurances.
Source: Capital.gr
