Israeli Energy Ministry CEO Defends Natural Gas Export Amid Long-Term Supply Concerns
Yossi Dayan, CEO of the Israeli Ministry of Energy and head of the committee reviewing the natural gas sector, announced that the committee's final conclusions will be published soon. The committee, established in February 2024, had previously released interim recommendations in April 2023 aimed at preserving natural gas reserves for Israel's long-term domestic use. Recently, the State Comptroller warned that despite the committee not yet completing its discussions on increasing gas reserves, the government might push for gas exports, potentially jeopardizing Israel's energy independence in 22 years.
The Knesset Economics Committee held a session at the request of MK Yasmin Sachs Friedman from Yesh Atid, amid concerns over rising electricity prices and the ongoing work of Dayan's committee. Meanwhile, the government approved expanding gas exports to Egypt and Jordan. Sachs Friedman criticized the management of the gas sector, questioning the rationale behind the fifth exploration round after four unsuccessful attempts and expressing doubts about current developments.
In response, Dayan defended the sector's management, stating, "The gas sector is managed excellently. Gas prices are my and the ministry's top priority. Export is not a taboo; there are significant strategic and political considerations justifying export permits." He highlighted the export permit to Egypt, which facilitates the development of the Leviathan reservoir, increases production capacity, and enhances market competition.
The gas export deal with Egypt, signed at the end of last year, is the largest in Israel's history. Under this agreement, partners in the Leviathan reservoir, Delek Drilling, NewMed Energy, and Ratio, will supply Egypt with approximately 130 billion cubic meters of natural gas by 2040, valued at around 35 billion dollars. Dayan estimated that this deal would increase revenues to Israel's sovereign wealth fund by 21 to 25 billion dollars over the next decade.
