In first use of Israel’s offshore finds, natural gas starts flowing to Ashdod
Four years after its discovery, pumping from Tamar field begins Israel potential transformation from energy importer to exporter
Natural gas from the offshore Tamar field was pumped to Israeli shores for the first time Saturday, four years after its discovery, in preparation for its first use in the Israeli energy market — a move that could transform the Israeli economy.
The Tamar deposit, discovered in 2009, some 90 kilometers west of Haifa, holds an estimated 8.5 trillion cubic feet of natural gas.
On Saturday, natural gas from the field was being pumped hundreds of kilometers south to a processing plant in Ashdod, where it was set to arrive on Sunday. From there, it will flow into the Israeli market. These newly harnessed resources promise to be a major boon to both the country’s public and private energy needs.
The Tamar deposit, and especially the heftier Leviathan, which was discovered in 2010, are expected to provide Israel enough natural gas for decades and transform the country, famously empty of natural resources, into an energy exporter.
Leviathan, which boasts an estimated 16 to 18 trillion cubic feet of gas, is expected to go online in 2016, the approximate time when exports are expected to begin.
Selling this gas overseas will require Israel to navigate a geopolitical quagmire that risks angering allies and enemies alike, however. Amid this uncertainty, Israel still has not formulated an export policy.
“Instead of being an ingredient which serves to calm the tensions of the eastern Mediterranean, (the discoveries) provide instead another impetus for rivalry,” said Simon Henderson, a fellow at the Washington Institute for Near East Policy. “There is a reason this is often called diplomatically trapped gas.”
The discoveries are just a portion of the huge reserves in the Levant Basin, which the United States Geological Survey estimated in 2010 holds some 122 trillion cubic feet of recoverable natural gas.
While Israel’s finds are minimal compared to gas giants Russia, Iran or Qatar, they are more than enough for the country’s domestic needs and would enable the country to reduce its reliance on costlier and dirtier oil and coal. Nearby Cyprus has also become newly resource-rich, and Israel’s other neighbors, including enemies, may discover their own deposits.
In all, Israel has just the world’s 46th largest supply of proven natural gas reserves, according to the CIA Factbook. But the country’s proximity to Middle Eastern and European markets could make it an important regional player. For oil companies hoping to profit from the new wealth, the biggest hurdle remains the lack of an export policy.
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