This is an increase of 20% in 2020 compared to 2019 • The Ministry of Energy expects the trend to continue • The Whale Reservoir has boosted gas exports to Egypt and Jordan
Tamar reservoir
Photo:
albatross
A bit of good news in the midst of the deepening economic crisis: revenues from gas and minerals royalties brought the country about NIS 1.1 billion in 2020.
The figure represents a jump of about 20% compared to revenues from these areas in 2019, and of more than 400% since 2012 - when royalties were first collected from natural gas discovered off the coast of Israel.
The forecast: optimistic
The Ministry of Energy predicts a further slight increase in royalty revenues in 2021, to a new peak of about NIS 1.15 billion.
Revenues from the "Sheshinsky tax", which will be collected for the first time this year, are expected to exceed one billion shekels this year, according to estimates by the Tax Authority.
The increase is due to an increase of close to 50% in the total production of natural gas from the large reservoirs in Israel, as a result of the start of production from the Whale Reservoir at the end of 2019.
Competition in the industry will intensify
The connection of the Whale Reservoir led to a significant increase in natural gas exports, following the start of natural gas exports to Egypt and a significant increase in exports to Jordan.
In 2020, revenues from natural gas royalties from the Whale Reservoir were also recorded for the first time.
They totaled no less than half a billion shekels.
Revenues from royalties from exports amounted to 273 million and constitute approximately 54.7% of the total royalties from the Whale Reservoir.
Most of the revenue from natural gas royalties, about NIS 592 million, comes from natural gas, which Tamar strengthens.
This is a decrease in revenues of approximately 29.2% compared to 2019, resulting from a significant decrease in natural gas prices.
This reduction in tariffs is expected to continue, given the development of competition in the natural gas economy in our region.
In addition to natural gas royalties, in 2020 revenues from mineral royalties in the amount of NIS 8.7 million and revenues of approximately 4.9 million were recorded.
In addition to the royalties levied by the Ministry of Energy for natural gas and minerals, the state also levied corporation taxes and for the first time this year will also levy a profit and natural resources tax ("Sheshinsky tax") for natural gas.
"Air pollution has dropped"
Energy Minister Yuval Steinitz, as expected, expressed satisfaction with the astronomical data released by his ministry.
"As I clarified in advance," he responded yesterday, "the large revenues from natural gas come only a few years after development. % In the air pollution we all breathe. "
