Gas in Israel: Future Sources of Supply

Vardina Hilloo

 

The recent discovery in Israel that revolutionize the country’s economic fortunes,
natural gas is set to become the beating heart of future energy plans.
The gas is expected to add an entire percentage point to economic growth,
giving the country a competitive edge.
The find could save Israel tens of billions of dollars in energy, a decade discovery.
Israel’s natural gas reserves are far larger than previously thought has the potential
to be import to Europe even to Egypt, Turkey and other places.

According to the U.S. Geological Survey, recoverable natural gas in the Levant Basin
located in Israeli and Cypriot waters of the eastern Mediterranean Sea,
amounts to a massive 18.9 trillion cubic feet.

The Leviathan Field, 130 kilometres off the Israeli coast and under 5,000 feet of
water, is a potential the third-largest in the Middle East, however gas started flowing
to Israel from the Tamar field this year. Current estimates put the total gas reserves
at 900 b.cu.m. But Israel looks to only need an estimated 500 b.cu.m. in the coming years.

The Tamar project is a partnership of the Delek Group, Noble Energy and Dor
Gas Exploration for drilling operations. In 2009, large-scale natural gas
reserves were discovered at the Tamar site, approximately 90 km west of the
Israeli coast, at a depth of 1,800 meters below the surface of the sea.

Houston-based Noble Energy along with Israeli conglomerate Delek Group
and subsidiary Avner Oil Exploration are behind the exploitation of the field
expected to produce initial volumes of 750 million cubic feet per day
when it opens in 2016.

Experts say gas from the nearby Tamar field, which opened this year,
will meet domestic demand for the next 25 years.

Israel signed a memorandum of understanding with Greek Cyprus and
Greece to cooperate on energy, binding Israel and Cyprus together over
Leviathan, a section of which is located in Cypriot waters. Israel also began
talks this week with other regional interests, including Turkey, about
constructing a pipeline to pump gas to Europe.

According to the energy ministry in Israel,  the forecast demand for natural
gas is based in large on: a continued rise in electricity consumption at
a multi-annual average of 3.1%; on minimal use of heavy fuel oil; on
reliance on coal power stations to the same extent as at the present
time; on gradual adoption of renewable energy sources to reach a level
of 10% in 2030; and on a transition to natural gas as the primary fuel for
electricity generation as of  2014, reaching 60% in 2027 and 68% in 2040.
In 2030, natural gas consumption during peak demand is meant to be 80%.