Israel Rebuffs Calls to Cap Natural Gas Exports Amid Looming Shortage

Israel's inter-ministerial committee on natural gas policy has rejected calls to reserve more natural gas for domestic use and cap exports. The decision, made after two and a half years of deliberation, maintains the current volume of 440 billion cubic meters reserved for the local market.

Cumulative demand for natural gas in the Israeli economy is projected to reach 515 BCM by 2036, which would suffice for only 20 years. This has raised concerns about a looming domestic natural gas shortage that could end Israel's era of energy independence and cheap electricity within a decade.

The committee recommended a policy focused on encouraging exploration and discovery of new offshore natural gas reservoirs in the country's economic waters. Energy Minister Eli Cohen emphasized that regulatory changes would undermine global energy companies' willingness to participate in exploration tenders, making it essential to maintain a stable regulatory environment.