Tzemach c'ttee: Export 50% of gas reserves

The committee recommends keeping half of the Tamar and Leviathan gas reserves for domestic use and exporting the other half.

The Tzemach Committee on energy policy, chaired by Ministry of Energy and Water director general Shaul Tzemach, recommends keeping half of the Tamar and Leviathan gas reserves for domestic use and exporting the other half. It estimates that Israel will have need to maintain a strategic reserve of 400 billion cubic meters (BCM) of natural, which will enable exports.

The Tzemach Committee today published its interim report for a public hearing, after which it will publish its final report and submit it to the government. The committee estimates that Israel will need 420 BMC of gas by 2040. The country's current gas reserves are 750 BCM.

At the press briefing, Minister of Energy and Water Uzi Landau said, "The geopolitical situation, and the need to create market certainty to ensure conditions to create incentives for continued gas exploration and development, should be taken into account. The prime minister and I appointed an expert committee, which obtained the best assistance in the industry. The interim report will go to a public hearing, after which it will be necessary to formulate all the comments and write a report whose main recommendations will be submitted to the government for a decision. I wish to thank the ministry staff who were involved in the writing of the report."

Tzemach said, "The challenge of managing the resources discovered so they can be used for many years is no less important than the challenge of finding them. We've been given an opportunity to set out important principles which will make possible the stable, credible, and secure management of this industry for many years, and to contribute to the energy security of Israel so that its people can benefit from this resource and enjoy its fruits for years by both this generation and the generations to follow.

Noble Energy Inc. (NYSE: NBL) owns 36% of Tamar and 39.66% of Leviathan, and Delek Group Ltd. (TASE: DLEKG) subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 15.625% of Tamar and 22.67% of Leviathan. Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) owns 28.7% and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Alon Natural Gas Exploration Ltd. (TASE: ALGS) owns 4% of Tamar, and Ratio Oil Exploration (1992) LP (TASE:RATI.L) owns 15% of Leviathan.

Published by Globes [online], Israel business news - - on April 5, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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