Natural Gas in Israel

Natural gas is a compound that occurs beneath the Earth’s surface, it consists mainly of methane – which is composed of carbon and hydrogen -, but also has hydrocarbon gas liquids and non-hydrocarbon gas. The natural gas can be used as fuel, as material or as material to make chemicals. Furthermore, Israel has currently discovered a massive natural gas reserve, with an estimated 2.4 trillion cubic feet of natural gas, and is expecting to be an energy-independent country and an exporter of natural gas.

Natural gas is currently one of the most indispensable types of energy, it provides quality, comfort, and convenience to the user whether by heating the home or cooking the food. In the US, for example, the natural gas is the largest source of the electrical generation ever since 2015. Furthermore, the US is also the largest producer of natural gas, thus, because of the great production and supply, the consumer price in the country is low, therefore, allowing every American to buy natural gas. Because of that, it is believed that around 177 million Americans use natural gas as a daily source of energy, thus, resulting in it being indispensable for the modern lifestyle of an American.

The United States of America is currently the largest producer of natural gas, with an average of 28.8 trillion cubic feet, and has been exporting it just as it is also supplying it for internal consumption. However, after Israel has found the new gas reserve, it is believed that the natural gas market is about to change as confirmed by Natural gas live charts. Although Israel desires to join the market, the country is also studying the possibilities of using natural gas to boost the country’s energy. Therefore, Israel is looking to have natural gas partners. Israel plans to sell or make a deal with the reservoir to Egypt, it is also planning to invest in a future in the energy sector. Furthermore, besides the fact that Israel is using the discovery to solve internal problems and to get a chance of entering the international market, the country is also planning to build pipelines to other countries, such as Jordan and India, and even to Europe, to improve the quality of the Eastern Mediterranean energy.

Another idea that the Israeli government had is to offer the reservoir for companies that desire to develop its offshore gas. Therefore, companies that develop small to mid-sized exploration fields would not face export limitations. Meanwhile, companies developing in large fields would face an export limitation, but it would be a small one. That way, Israel believes it will be able to attract the interest of the international market to the reserve. However, the Israel-Egypt deal is already proving to be an important step when it comes to revolutionizing the Middle Eastern energy generation. Therefore, if Israel indeed gets to attract international attention to the newly discovered reserve, it will only boost the country’s growth.

The fact that Israel relies mostly on coal-based energy generation is also important when it comes to deciding whether or not the country should invest in the natural gas or not. In 2007 it was estimated that around 70 percent of the Israeli energy came from imported coal, while the rest of it came from natural gas-pipeline from Egypt. Therefore, if Israel government decides to invest in the natural gas in Israel and in a combination of demand management and the use of several energy sources, it will reduce the risk and improve the likelihood of achieving the goals of joining the international market. That way, the country will be able to improve internal consumption and also to join the international market.