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Energy Ministry orders Israel's gas producers to set aside stocks for summer

Last summer, Israel found itself without sufficient gas to meet increased electricity consumption demands, and had to fall back on expensive and polluting coal and diesel.

by  Sonia Gorodeisky
Published on  04-20-2022 12:32
Last modified: 04-20-2022 12:32
Israel expects US-mediated Lebanese sea border talks in weeksAlbatross

The gas rig at Israel's Tamar offshore gas field | File photo: Albatross

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The Director of the Natural Resources Administration and Petroleum Commissioner in the Energy Ministry Guy Samet has instructed the Tamar and Leviathan natural gas producers to set aside enough gas for the Israeli market to ensure that "the needs of the local economy are fulfilled at the daily and hourly level, while exports to Jordan and Egypt continue."

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The Energy Ministry's instructions come as electricity consumption is expected to spike in the hot summer months, and natural gas is used to produce electricity. Because the Karish field, which was supposed to be online a year ago, has not yet supplied orders, the ministry is taking action to avoid a natural gas shortage in summer.

Both the Tamar and Leviathan fields export gas to Egypt and Jordan under long-term government-approved contracts.

Last summer, the Petroleum Commissioner also issued orders for a quantity of natural gas to be reserved for Israeli use, but those instructions did not account for industrial use. The types of contracts allowed producers to skirt the instructions, leading to a shortage of natural gas, forcing Israel to rely on diesel and coal to produce electricity, both of which are more expensive and polluting than natural gas.

In 2021, coal accounted for 23% of the fuel used to produce electricity, renewable energy accounted for 8%, and natural gas fueled 69% of the country's electricity production. The government hopes to avoid a similar situation this year.

"As part of the Energy Ministry's preparations for this coming summer [May-September 2022], we are asking to ensure that local consumers will be supplied," the commissioner wrote, proceeding to outline specific daily quantities necessary to supply Israel's economy starring in June.

Meanwhile, the contracts with the natural gas producers allow them to reduce the amount of gas exported to Jordan and Egypt, so the government is able to balance exports with the needs of the local economy.

Dr. Amit Mor, an expert on natural gas and CEO of Eco Energy and a lecturer at Reichman University, told Israel Hayom that the government should recalculate its approach when it came to the use of natural gas.

"Given the lessons of the Ukraine war, it is vital for the government to recalculate its route for Israel's energy security, which is national security, just like European countries, the US, and many other countries are now doing," Mor says.

According to Mor, "Decision makers in Israel and the rest of the world must realize that natural gas isn't a transitional fuel, but a resource that will stay with us as a main source of energy through the 22nd century, as we eliminate the carbon emissions that burning it creates. Preparing a natural emergency program for energy and the climate is something that must be done now, otherwise we'll find ourselves dying of heat and without electricity."

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