Israel set to raise gas export quotas

Leviathan rig Photo: Albatross

The expected policy change follows strengthening of renewable energy production in Israel, which has reduced natural gas needs.

The Israeli government is expected to hand a victory to the Leviathan and Tamar partners by raising the quotas on natural gas exports. An inter-ministerial committee headed by Ministry of Energy director general Udi Adir is set to recommend the expansion of gas exports.

The expected policy change follows strengthening of renewable energy production in Israel, which has reduced domestic natural gas needs. Increasing exports would overcome the shortfall in natural gas consumption in Israel.

The shift to renewable energy in Israel is likely to increase and several months ago the government raised the target for overall use of renewable energy to supplying 30% of all energy needs by 2030. Consequently, the inter-ministerial committee is likely to recommend that exports from Tamar and Leviathan are increased to 50% of overall production from the current rate of 40%.

Israel already has contracts to export 130 billion cubic meters to Egypt and Jordan and the higher quota will allow new contracts to be signed.

Published by Globes, Israel business news - en.globes.co.il - on May 31, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Leviathan rig Photo: Albatross
Leviathan rig Photo: Albatross
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