The Ministry of Energy's oil commissioner instructed the Tamar and Leviathan natural gas reservoirs to prepare and ensure that during the coming summer months "the needs of the local economy will be met optimally, at the daily and hourly level, along with continued exports to Jordan and Egypt."
Against the background of a request from the Ministry of Energy, an increase in electricity consumption recorded every summer in Israel, which is accompanied by an increase in the consumption of natural gas used to generate electricity.
Following the delay in the flow of natural gas from the Shark Reservoir, which was supposed to start operating a year ago, the Ministry of Energy is working to prevent the shortage of gas for the economy during the summer months.
As will be recalled, Israel exports natural gas to Egypt and Jordan from the Tamar and Leviathan reservoirs.
These are long-term contracts approved by the government.
In the summer, when electricity consumption increases significantly, Israel may find itself in a paradoxical situation - using coal and diesel, which are considered more expensive and polluting than natural gas for electricity production, and at the same time continue to export natural gas to neighboring countries.
Last summer the oil commissioner discounted maintaining a certain amount of natural gas to the local economy, but his request did not include the industry.
Therefore, through the various types of contracts, it was possible to circumvent its directive, so that the local economy did not have enough natural gas left.
In 2021, the fuel mix for electricity production in Israel was about 23% coal, 8% renewable energy, and 69% natural gas.
This year, in order to avoid a similar situation, the Ministry of Energy contacted the gas companies.
"As part of the Ministry of Energy's preparations for the coming summer months (May-September 2022), we want to ensure that the needs of the local economy are met optimally, on a daily and hourly level. This, along with continued exports to Jordan and Egypt," the oil commissioner wrote.
The Commissioner further specifies the specific quantities to be guaranteed for the benefit of the local economy from the beginning of June: "This quantity will be made available to the local economy daily, and it will be possible to export any production quantity for which there is no order from local customers."
The gas export contracts signed by the companies allow the reduction of gas quantities to Egypt and Jordan.
The intention is to balance the continuation of exports with the needs of the economy.
For gas companies, saving a certain amount of natural gas to the economy means reducing natural gas exports.
According to Tamar's contracts, it is more committed to the Israeli market and its exports are mainly based on available space.
The gas industry says that the quantities were coordinated in advance and in cooperation between the Ministry of Energy and the two reservoirs.
Natural gas expert, Dr. Amit Moore, CEO of Eco Energy, strategic economic consultant and senior lecturer at Reichman University, says in an interview with Israel Today that the government must recalculate the route regarding natural gas uses.
"In light of the lessons learned from the war in Ukraine, it is imperative that the government reconsider the issue of Israel's energy security, which is national security, as European countries, the United States and many countries in the world are now doing," he says.
Temporary Order: Emergency Plan
According to Dr. Moore, "policymakers in Israel and around the world must internalize and recognize that natural gas is not a transit fuel, but a resource that will remain with us as a major energy source deep into the 22nd century while resetting the carbon emissions it produces.
"Preparing a national emergency plan for energy and climate is the order of the day, otherwise we will find ourselves dead from heat and without electricity, literally."
NewMed Energy said in response to a letter sent by the Ministry of Energy's oil commissioner that they "work in cooperation with the Ministry of Energy and all customers, and are committed to all the contracts we have signed."
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