Israel sees 23 per cent rise in natural gas revenue

Tel Aviv [Israel], August 30 (ANI/TPS): Israel’s Energy and Infrastructure Ministry has received more than 11.7 billion shekels (USD 3.8 billion) of natural gas royalties to date, of which more than 1 billion shekels (USD 263 million) were received in the first half of 2023.
That second figure represents a 23 per cent jump from the first half of 2022.
The revenue growth stems from increases in the production of natural gas for export and the production of hydrocarbon liquids, as well as a rise in the value of the dollar against the shekel — because the prices of exports are set in dollars.
The Energy Ministry’s Division of Royalties, Accounting and Economics published the report.
Royalties from exports totalled approximately 590 million shekels (USD 155 million—58.6 per cent of the royalties in the first half of 2023.
Royalties from the Leviathan reservoir—Israel’s largest—during the same period amounted to approximately 482 million shekels (USD 127 million) from the production of approximately 5.44 billion cubic meters (BCM) of gas. The Leviathan royalties were up 6.4 per cent from the same period last year.
Most (about 86.12 per cent) of the Leviathan royalties came from exports, with the balance produced by sales to the domestic market.
Royalties produced by the Tamar reservoir in the first half of 2023 totalled 379 million shekels (USD 100 million), up 3.4 per cent from the corresponding period last year. Approximately 4.91 BCM of gas was produced.
Royalties from the Karish reservoir (which began production in October 2022) in the first six months of 2023 totalled 145 million shekels (USD 38 million) from the production of approximately 1.97 BCM of natural gas and approximately 947,000 barrels of hydrocarbon liquids.
Israel Prime Minister Benjamin Netanyahu held a discussion on the state of the natural gas industry on Sunday, his office said.
The premier received a comprehensive briefing from Energy Minister Israel Katz along with a forecast for the next 25 years of offshore production and ways to boost exports.
National Economic Council Director Avraham Simhon and his team presented similar data to that of Katz regarding the expansion of production and exports.
Netanyahu decided to establish a joint Energy and Infrastructure Ministry, Finance Ministry and National Economic Council team “to formulate a plan to provide a horizon for companies and certainty for the local economy.”
He also reiterated that Katz is authorized to approve exports “to ensure the energy security of the State of Israel and fight the cost of living while maximizing the diplomatic benefits.”
Israel’s economy saved more than 316 billion shekels (USD 86.1 billion) over the past decade thanks to its “natural gas revolution,” according to a study released in early August. The report, by economic consulting firm BDO and the Israeli Natural Gas Trade Association, said this reflected a savings of more than 120,000 shekels (USD 32,000) for every family in Israel over the past decade.
According to the study’s projections, an additional 70 billion shekels (USD 19 billion) of natural gas funds are forecast to be paid into the state treasury by 2030, with that figure expected to rise to more than 300 billion (USD 81.8 billion) by 2050. (ANI/TPS)