With Gas Pipeline Nearly Complete, Israel Envisages Lucrative Export Market for Its Offshore Gas

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With Gas Pipeline Nearly Complete, Israel Envisages Lucrative Export Market for Its Offshore Gas

Mon, 03/14/2016 - 09:19
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Natural Gas Transmission System (© 2016 Israel Natural Gas Lines)
Natural Gas Transmission System (© 2016 Israel Natural Gas Lines)

Israel Natural Gas Lines announced last week that a gas pipeline currently being constructed in the Dead Sea area will begin supplying gas from the Tamar reservoir in the Mediterranean to private customers in Jordan next year. A second pipeline to be built in the Beit Shean area is due to supply 45 BCM of gas from the Leviathan reservoir, 47 km southwest of Tamar, to the Jordanian National Electric Power Company (NEPCO) over 15 years. Contract value is $15 billion.

Samuel Tordjman, the company's CEO, said Israel Natural Gas Lines is has its eye on the future: "Investing all the necessary resources to prepare for a constantly increasing demand for natural gas, and in the readiness of the national system to handle the gas from the Leviathan reservoir. 2016 is presenting us with many challenges, and we are continuing to build new gas lines during this period. We plan to double the existing lines and connect new customers all over Israel."

Nonetheless there is still no final agreement between Israel and Jordan due to three things: the poor state of Israeli-Jordanian political relations, the lack of progress in outfitting trucks, buses and factories to switch from oil and coal to gas and the highly-regulated business environment within Israel, and this could conceivably stall the anticipated export of Israeli gas abroad.

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