Energean plc CEO Mathios Rigas held an open conversation with "Globes" energy and geopolitics reporter Dean Shmuel Elmas at the Globes Israel Business Conference in Tel Aviv this week. Rigas stressed his company’s commitment to continuing to supply natural gas even during the war, and the importance of competition in the Israeli gas industry.
Rigas described how, when he came to Israel in 2017, he promised then minister of energy Yuval Steinitz that Energean would bring about a higher and more secure supply of gas to Israel, and would boost competition. "Competition is the most important element in the industry in Israel, which is characterized by high concentration. We must act now to maintain competition in the gas economy and to ensure continued energy security," he said.
At the beginning of the war, new players were chosen in gas exploration tenders in Israel, among them BP, but they have yet to arrive. "They talk a great deal about coming to this market, but they don’t actually do it," Rigas commented. "In projects in this country, it’s necessary to know how to put the country first, and giant companies that specialize in mega-projects don’t always do it right."
Rigas pointed out that, despite the war, energy prices had remained low. "It’s not simple. In Europe, after the war in Ukraine, prices jumped. It didn’t happen here."
He said that before Energean’s advent in the market, prices were higher, and the sector was in effect a monopoly. "When we came along, they thought that this small company wouldn’t do anything, but we succeeded in bringing down prices" he said. Rigas called for more competition in Israel, and undertook to sell gas at low prices.
How is it that, despite the constant attacks on Israel, the gas still flows?
"That is our commitment, to continue producing even in wartime. During wars, infrastructures are the first things to be attacked. You can see this in the case of the war here in Israel as well," Rigas said. He mentioned that, after the attack by Iran, Chevron halted production at the Leviathan and Tamar gas platforms, but Energean, which owns the Karish reservoir, remained as the only company supplying energy to Israel. "It’s not simple to continue operating during an attack, but we said that as long as the state explained that the workers were safe, we would continue to work and supply gas."
Rigas sees the Israeli ability to adapt as important in this area, and explained the change that had taken place in Israel’s energy independence. "Once, Israel was dependent for energy on Egypt, which supplied it with gas. Today, Israel is energy independent, and not only that, but it’s the one exporting gas to Egypt." He added that, on the geopolitical plane, this energy capability gives Israel significant power.
Has the war affected activity on the production ship? You have many foreign workers?
"Yes, we had to mediate that, mainly to people in London who were worried about the situation here in Israel. However, we explained to them that if you walk around the streets of Tel Aviv, it’s hard to find a free place to eat," Rigas joked. He added that there were challenges, such as the demands of the insurance companies and fears on the part of the families of the foreign workers working on the reservoir, but that they had managed to deal with them.
"Israel is a wonderful country for business and wonderful for investment," Rigas said, but added that two main elements had to be recognized: "You have to know how to produce gas, and you have to be familiar with the Middle East mentality." He said that, as a Greek, he found a great deal of similarity between the Greek and Israeli mentalities.
How is AI affecting the energy sector?
""How many people use ChatGPT? A lot. Every time you use Chat, you use ten times more energy than in a search on Google," Rigas said.
He added that the AI revolution was generating huge demand for energy, and that it required the investment of trillions of dollars to operate the data centers.
The Globes Israel Business Conference is held in collaboration with Bank Hapoalim and The Phoenix Holdings, and is sponsored by El Al, Bezeq, Nespresso, Wolt, Dell, the Israel Medical Association, Energean, the Jewish National Fund, BlackRock, Playtika, Meta, Strauss Group, BAZAN Group, and MSCI, with the participation of Mekorot, The Port of Ashdod, and the Israel Innovation Authority.
Published by Globes, Israel business news - en.globes.co.il - on December 4, 2024.
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