Israel Launches Fifth Offshore Gas Exploration Tender Amid Export and Supply Concerns

Israel's Ministry of Energy announced on Monday the launch of its fifth tender for natural gas exploration in the country's economic waters of the Mediterranean Sea, after months of delay. Energy Minister Eli Cohen explained that the tender was ready for several months but was postponed due to the political and security situation. He expressed hope that many companies, including international players already operating in Israel, would participate, noting potential for discovering deeper gas layers and possibly oil. The ministry aims to expand gas reserves to benefit both the local market, which remains a priority, and exports.

Yossi Dayan, Director General of the Energy Ministry, emphasized that the tender would increase supply, foster competition, attract new players, and generate state revenue by reducing regulation. The current tender includes six new offshore blocks and seeks to revive exploration efforts after previous tenders, including the fourth won by BP and Eni, stalled due to regulatory instability and worsening security. Recent military tensions with Iran have caused prolonged shutdowns of key gas platforms Karish and Leviathan, highlighting the strategic vulnerability of Israel's offshore infrastructure and raising doubts about international energy companies' willingness to invest now.

Earlier on Monday, the Knesset's Economic Committee, led by MK David Bitan, convened to discuss concerns over prioritizing gas exports over local supply and the risk of rising electricity prices. The meeting included Dayan and representatives from economic and civil organizations. Dayan assured that fears about gas prices and supply were unfounded and announced that the committee's recommendations on balancing local reserves and export approvals would be published soon. MK Yasmin Sachs Friedman, who initiated the discussion, criticized the delay in implementing the committee's recommendations and the lack of competition in the local gas market despite large export agreements.

Dayan defended export policies as vital national interests, including security and substantial state revenues, citing the Leviathan-Egypt export deal that guarantees mechanisms to prevent local shortages and includes price caps. According to data from the Knesset Research Center, despite increased exports, local gas prices have remained stable or decreased by over 15% since the Leviathan and Karish fields began production. In 2025, Israel's natural gas supply reached approximately 26.8 billion cubic meters (BCM), a 159% increase since 2017, with 14.4 BCM consumed locally and 12.4 BCM exported.

However, a recent State Comptroller report warned that Israel risks losing energy independence within 22 years as current gas reserves may be depleted by the early 2050s. The report criticized the Energy Ministry's committee for underestimating future demand by 75 BCM and ignoring emerging needs from AI data centers and climate challenges. It also highlighted Israel's lack of emergency preparedness, noting zero natural gas storage capacity and no safety net if offshore platforms are damaged.