Treasury mulls raising gas export quotas

Gas exploration companies are optimistic ahead of the publication of the Tzemach Committee's final recommendations.

Sources inform ''Globes'' that gas exploration companies are optimistic ahead of the publication of the Tzemach Committee's final recommendations on the natural gas market. A few days ago, the release of the final report was postponed by a few weeks, apparently to give the Ministry of Finance, Ministry of Energy and Water Resources, and the Antitrust Authority more time to formulate the government's policy on the gas supply contracts signed by the Tamar partners.

A Ministry of Finance source told "Globes", "We have not concealed the ministry's original position about higher gas export quotas." He added that the ministry was considering amending some of the Tzemach Committee's recommendations, including raising gas export quotas, belying earlier assessments. "We want to ensure both gas exports and greater competition in the Israeli market," said the source.

In early April the Tzemach Committee, chaired by Ministry of Energy and Water Resources director general Shaul Tzemach, published its interim recommendations, ahead of a hearing. The hearing was held a few days ago. The committee recommended Israel keep a strategic reserve of 400 billion cubic meters (BCM) of natural gas, and export reserves above this amount.

The committee estimates that Israel will consume 420 BCM through 2040, and that current discoveries total 750 BCM. It advised keeping half of the Tamar discovery for domestic use, and exporting the rest.

Published by Globes [online], Israel business news - www.globes-online.com - on June 7, 2012

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

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