While the world is at the height of the financial crisis, which stems in part from a spike in commodity prices, there are also those who benefit from the situation and by and large - and these are energy companies.
The rise in world natural gas prices has given impetus to the activities of the New-Med Energy partnership (the new name of Delek Drilling), owned by Yitzhak Tshuva.
New-Med Energy holds about 45% of the Whale Reservoir.
No less important than profitability, it is also noticeable that gas companies have recently enjoyed a significant improvement in their public image.
The repeated statements by senior members of the economic elite that Israeli natural gas has helped keep electricity tariffs low compared to what is happening in Europe have paid off.
The battle for credit among politicians, over who is really responsible for exporting gas to Europe, also conveys to the public that it is good that the gas does not remain in the ground.
"The global energy crisis has dramatically sharpened the importance of Israeli natural gas not only for Israel, but also at a regional level - for Jordan and Egypt. If we did not have these discoveries, Israeli citizens would pay at least 60% more in the electricity bill," he said in an exclusive interview. "Israel Today" Yossi Abu, CEO of New-Med Energy for the past 11 years.
"You see it in Europe - the price of electricity has risen there by 300%, because the price of natural gas has risen dramatically. In Israel, on the other hand, the price of natural gas is about 5-4.5 dollars per unit of heat, while in Europe and Asia it is $ 30. With the prices of natural gas being one of the lowest in the world, and this is reflected in the electricity tariff per citizen. "
"I see today the war for credit between politicians, and one thing I can say about it: we have obviously done something big and good. The Tamar project brought energetic independence to Israel, and the Whale project has become a very significant regional anchor, supplying gas to Israel, Jordan, Egypt and Egypt. Also in Europe In the last two years, Israeli gas has reached Europe and Asia through Egyptian sewage facilities.
"Beyond that, I believe that in the coming years we will reach a situation where Israel will be a very significant energy supplier for Europe. Although we will not replace the Russians, we will be a key part of Europe's solution to the energy crisis that befell it."
Are we not too small for that?
"Russia will supply about 150 BCM of natural gas to Europe by 2020. If I take countries like Belarus out of this lot, which are closer to Russia, we are talking about about 100 BCM. Some of it will be replaced by renewable energies, and some by natural gas. We expect about 80-70 BCM to come from around the world using LNG (liquefied petroleum gas; SG).
The main players will be the United States and Qatar, and Israel will also be there.
"How much will we be there? We will be between 10 and 20 BCM a year I believe, which is quite a bit in the European fuel basket. I believe we will be a very significant supplier for Europe right in the coming years."
How can we reach these quantities?
"The Whale Reservoir is currently producing 12 BCM, and the goal is to double the production. We are working on it - all our focus in the company's management is on expanding the Whale. We also have a reservoir in Cyprus - Aphrodite, where we can produce about 8-6 BCM. By expanding "Whale, together with the development of Aphrodite, we will be able to reach about 20 BCM of additional production, in order to reach a situation where within 3-5 years we will be able to reach Europe with the Israeli natural gas in these quantities."
"The LNG consumer market is mainly the European market and the Asian market. These markets are thirsty for LNG and we are a very attractive alternative for them. Also because of the geographical location - proximity to Europe and Asia via the Suez Canal, but also because of the very significant reserves A key supplier for Europe. "
How realistic is it - to bring the sludge ship to Israel?
"We have done a tender procedure for the design of the sludge ship, in which we contracted with a Dutch company called Exmerer, which is an expert in the field, and we are busy designing the sludge ship. The ship is expected to take gas from a whale and turn it into liquid. Our goal is to try to reach an investment decision by the end of next year, 2023 - that is, to order the ship. "
How much will such a ship cost?
"Such a ship can reach an investment of $ 3 billion. It should be understood that if the royalties and taxes, including the oil and gas profits tax, are taken into account, the State of Israel received more than NIS 16 billion in revenue from Tamar and their companions - and that is in existing production. If we double production, So it is understandable that the money that the State of Israel will receive is billions. "
How much will Israel gain from gas exports to Europe?
"If we are talking about a deal of 20-10 BCM per year for gas exports to Europe, for 20 years - we are talking about a deal of $ 100 billion. The State of Israel is 50% of that, without investing anything. So we are talking here about dramatic revenues for the State of Israel. "Natural gas is a very significant economic anchor."
After the country has already signed the framework agreement for gas exports to Europe, did you start negotiations with the gas companies in Europe?
"The framework agreement is intended to provide regulatory conditions that will allow exports, but negotiations have long since begun.
We have been exporting to Europe via Egypt for two years now.
"Negotiations on the big deal have been going on for a long time with many companies in Europe, and it is progressing well. There is a strong desire that many countries in Europe - the Netherlands, Germany, Romania, Italy and others - will enter into long-term deals with Israel." .
Will the significant increase in exports we talked about not lead to gas shortages in Israel?
"We need to talk about facts here. The State of Israel consumes about 13 BCM of natural gas a year. If I also take into account the potential increase in gas consumption, then in a decade we are talking about a maximum of 20 BCM, because the State of Israel is making efforts to introduce more renewable energy. Then in the next 30 years the State of Israel will need about 400 BCM, and so far 1,100 BCM of natural gas has been discovered. "
Although natural gas is a better alternative to polluting coal and diesel, it is considered a polluting energy.
"We have to stick to the facts. If we take the level of air pollution in 2012, just before we started producing transducer gas, compared to where we are today after the transducer production and accompanying them - there is a 70% decrease in air pollution, even though electricity production has increased. "If I look at greenhouse gas emissions, there is a 30% drop. In other words, natural gas has led to a dramatic increase in regional quality in Israel, and not only in Israel - also in Egypt and Jordan."
Were we wrong?
Fixed!
If you found an error in the article, we would love for you to share it with us