Weaker Dollar Cuts Israel's Natural Gas Royalties by 15% in 2025

Israel's state revenues from natural gas royalties totaled 1.96 billion shekels in 2025, marking a 15% decline from 2.31 billion shekels in 2024, according to a report by the Natural Resources Administration of the Ministry of Energy. The ministry attributed the drop primarily to the weakening of the US dollar against the shekel and falling global oil prices. Additional factors included the First Iran War and planned production halts for maintenance and upgrades at the Leviathan and Tamar gas fields.

The report detailed that royalties from the Leviathan field amounted to 833 million shekels, down from 1.02 billion shekels in 2024, based on nearly 11 billion cubic meters (BCM) of gas production. Approximately 84% of Leviathan royalties came from export deals. Tamar field royalties reached 675 million shekels, compared to 779 million shekels the previous year, with production around 10.5 BCM. The Karish field generated 433 million shekels in royalties, down from 507 million shekels in 2024, on production of about 5.6 BCM.

Since 2004, Israel's total natural gas royalty revenues have accumulated to approximately 17 billion shekels. In related infrastructure developments, the company Netivei Gaz (Natgaz) recently completed laying a subsea pipeline between Ashdod and Ashkelon. This pipeline will connect to the EMG pipeline leading to El-Arish in Egypt, as part of efforts to expand Israel's gas export infrastructure.