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Israel Mines Two Offshore Gas Fields In 2020

- Feb 05, 2018 -

The Israeli Times reported that following the signing of a cooperation agreement between Israel's Department of Energy and the U.S. Department of Energy in 2016 on research and development in natural gas, smart grid, seawater desalination and other fields, the Israeli government announced in 2017 that the project's budget will be increased from $ 4 million to 800 Million U.S. dollars to further deepen cooperation in energy R & D between the two countries. Israel's energy ministry said it will start mining the Tarim and Leviathan gas fields near Karmal and Tanin fields in 2020, driving down natural gas prices through competition.

The industry generally believes that these two fields about 550 billion cubic meters of natural gas. This mining plan shows that Israel has the ability to adhere to the development plan and once the new gas field is mined, competition in the market will be aggravated and gas prices will drop. In the case of adequate demand in the natural gas market, the Kalish gas field will be exploited first and then the Tarim gas field will be exploited. According to the mining plan, loading and unloading vessels will be arranged 90 kilometers offshore and the natural gas extracted from the two new fields will be processed and stored there for export.

In December 2016, Israel agreed to sell the Karish and Thain gas fields to the Greek oil producer Energean, and Rigas, the company's chief executive, estimated the cost of developing the two adjacent gas fields was between 1.3 billion and 1.5 billion U.S. dollars. This is by far the largest project to date for Energean, active in Greece, Egypt, and Montenegro, and the Greek government approved the company's $ 148 million purchase from Nobel Energy Corp. of America and Israel's Delek Group. Exploration permits for two gas fields. The two fields are estimated to have 2.4 trillion cubic feet of natural gas and 25 million barrels of light crude oil each of which will be used in the Israeli market under the terms of the sale.

Previously, the two fields were arranged for sale to a consortium of Nobel energy companies and the Delek Group, which have monopolized the Tamar and Levitan fields. Regulators have pointed out that the initial agreement between Israel and the consortium violated the antitrust laws because the "stabilization clauses" of the agreement could prevent the Israeli government from implementing the management measures such as preventing the consortium from engaging in alleged monopolies within a decade. In March 2016, the Israeli High Court withdrew this "stability clause." Youvry Sistani, Israel's energy minister, said: "We decided to put an end to this monopoly, so the consortium sold the mining rights of the Karish and Tanin fields to Energean."

Israeli Energy Minister said the total extraction of the four gas fields will bring 92 billion US dollars of revenue, more than the United States over the past few years the sum of Israel's appropriations. Israel currently relies solely on the Tamal gas field and its single natural gas pipeline to support most of its domestic electricity production, and many safety planners have shown that such dependence may be a potential strategic risk in any future conflict. Nobel Energy Corp. said in February 2017 that it is pushing for the exploitation of the offshore gas field in Levitan, Israel, allocating nearly $ 4 billion to the project and plans to start the project by 2019.