Israel's gas royalties up 30%, topping NIS 1b in 2020

Leviathan rig Photo: Albatross

With the Leviathan field beginning operations, royalties were actually 40% below expectations.

Fees and royalties to the state from Israel's natural gas, oil, and minerals totaled NIS 1.105 billion in 2020, up 30% from 2019, the Ministry of Energy reports.

Most of the revenues came from royalties on natural gas, which totaled NIS 1.09 billion in 2020, up 29.6% from 2019 but NIS 400 million below expectations because of the reduction in energy use during the Covid-19 crisis.

There was a 48.4% increase in natural gas production in 2020, the Ministry of Energy reports, with the Leviathan field coming on stream on December 31 2019. Gas exports to Egypt and Jordan increased significantly.

Gas production from the Tamar field in 2020 totaled 8.27 BCM, generating royalties of NIS 592 million, while gas production from Leviathan, in its first year of operations, totaled 7.32 BCM, generating royalties of NIS 273 million.

Revenue in 2020 was also hit by a fall in the price of natural gas with the average price per thermal unit falling from $5.512 in 2019 to $4.8 in 2020.

Published by Globes, Israel business news - en.globes.co.il - on March 2, 2021

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

Leviathan rig Photo: Albatross
Leviathan rig Photo: Albatross
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