Israel’s Gas Boom, by the Numbers: What the New Industry Report Says
A 2025 natural gas sector report released by BDO for the Natural Gas Association, marking 10 years since Israel’s gas framework took effect, says the country’s gas revolution began in 2013 when the Tamar field started supplying the market. Since then, other fields, led by Leviathan, have joined in, and gas now provides more than 70% of Israel’s electricity generation.
The report says Israel’s gas reserves have grown by about 40% since 2012 and now total 1,044 BCM. On that basis, it projects domestic gas supply will be secured until at least 2062, even after existing export agreements with Egypt and Jordan. It also says Israel ranks second in the OECD for gas reserves per capita and first in preserving gas for future generations.
On prices, the report argues Israel moved opposite the global trend. It says domestic natural gas prices have fallen about 20% since the gas framework, or roughly 25% in shekels, while global prices rose more than 60%. Electricity prices in Israel, it adds, have fallen 16% and are now about 50% below the European average. The report estimates the gas industry’s total economic contribution at about half a trillion shekels, including 246 billion shekels in energy-cost savings and 256 billion shekels in environmental benefits from reduced air pollution.
State revenues from royalties, taxes and levies have exceeded 35 billion shekels so far, and the report forecasts about 475 billion shekels by 2062, with monthly state income from the sector expected to top 1 billion shekels from 2028. It says Israel is Jordan’s main gas supplier and Egypt’s largest gas import source, with gas accounting for about 86% of trade between Israel and its neighbors. The report also says exports did not weaken energy security, but helped finance infrastructure and resilience, and that the shift to gas cut greenhouse-gas intensity in power generation by 45% and reduced sulfur and nitrogen pollution by 79% to 90%. BDO chief economist and energy expert Chen Herzog said the framework’s benefits were proven during the war, when gas supply continued despite field shutdowns and electricity prices did not rise, unlike Europe during the Russia-Ukraine energy crisis.
