Israel’s natural gas-export drive to get boost from new drilling licenses

Al-Monitor Pro Members

David Rosenberg

Israeli reporter specializing in business, economics and politics

Aug. 14, 2023

With initial bids submitted in July to explore for new sources of natural gas, Israel has moved an important step closer towards a significant increase in production. Since domestic needs can be met by current levels of output, additional production will have to be exported. The Ukraine war and Europe’s efforts to find alternatives to Russian energy present the key market opportunity for Israel. But for that to be realized, the government will have to increase export quotas, and channels for delivering the gas (mainly as liquefied natural gas or LNG) will have to be developed. There are risks. Concerns in Israel over domestic energy security may limit quota increases while proposed LNG terminals may fall victim to national security concerns and/or regional politics. European gas demand may not materialize. However, the market opportunity and the growing presence of major energy companies work in favor of expanding production and exports.