The drilling rig at Leviathan. Of the countries that do not subsidize natural gas, only in Canada is it cheaper for the consumer than in Israel/official website, Albatross
While discussions on the right way to combat the cost of living are still ongoing, at least the energy sector provides good news by comparing prices between Israel and other countries, a comparison we are used to, but for a change presents us in a flattering light.
The International Gas Union's annual price report for 2022, published towards the end of last week, details natural gas prices in 85 countries around the world. The report is considered the most comprehensive in the world on natural gas prices.
In addition to information on prices, the report also details the price mechanisms that exist in the various markets – markets in which gas prices are set in the free market, markets in which gas prices are subsidized, and more.
The report shows that natural gas prices in Israel in 2022 were the lowest in the world, excluding Canada, among the countries that do not subsidize the price of gas. Among the countries subsidizing the price of natural gas are Iran, Venezuela, Turkmenistan, Libya and Algeria.
In 2022, gas prices in Israel, which stood at an average of $4.65, were significantly lower than countries with locally produced gas markets such as the United States (the world's largest natural gas producer), Australia, Argentina, Brazil, Colombia, Indonesia, Romania, Bangladesh, Malaysia and more.
Amir Foster, CEO of the Natural Gas Association/PR
Amir Foster, CEO of the Natural Gas Association: "2022 has been particularly turbulent in the global energy market, with price records being broken in many parts of the world. Natural gas prices in Europe reached $80, but records were broken elsewhere.
For the first time, in 56 countries, average gas prices have exceeded $10, including in countries where natural gas consumption is based on domestic production, such as Australia and Brazil.
In other markets, where gas consumption is also based on local production, natural gas prices in 2022 were tens of percent higher than in Israel.
These countries include the United States (the world's largest gas producer), Malaysia and Indonesia (countries with significantly larger gas production than Israel).
The development of a broad natural gas infrastructure enabled the Israeli gas sector to be the energy and economic defensive wall, so that the impact of the global energy crisis in Israel was probably the most moderate in the world, and undoubtedly the most moderate among OECD countries.
The infrastructural development over the past decade has enabled the Israeli economy to benefit from the lowest price of gas in the world, with the exception of Canada, among the countries that do not subsidize its price.
In fact, the price of gas in Israel in 2022 was the lowest since the beginning of the gas revolution in Israel, while the average price of gas worldwide was double.
Continued development of production infrastructures for the local economy and for export will enable the State of Israel to strengthen energy security for the coming decades as well as become a significant player in global markets."
- More on the subject:
- Natural Gas
