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Bethel Finance news:
Israel will allow companies to export natural gas from newly discovered fields in the eastern Mediterranean but only after it secures enough to meet its own energy needs for at least a few decades, Energy Minister Uzi Landau said.
Gas production is set to soar in Israel following the discovery of some of the world's largest offshore reserves, but what to do with the gas has become a matter of debate. Exploration companies have been lobbying hard to be able to sell gas abroad.
The government set up a committee late last year to decide the best way to handle the resources, and officials have largely stayed quiet on the issue, preferring to wait until the panel makes its recommendation, which is due by the end of February.
Landau, whose ministry oversees the rapidly developing natural gas sector, told Reuters in an interview this week that exports were a must in order to stay competitive and attract new foreign players.
"My gut says we store as much gas as possible to meet Israel's interest, but there are economic and geopolitical advantages in export," Landau said.
"To export, you need a minimal amount (for domestic use), which will last 30 years, 40 years, which is a reasonable number in my eyes," he added.
The two largest gas fields in the area - Tamar, with reserves estimated at 9.1 trillion cubic feet, and the nearly twice as big Leviathan - were discovered by Israeli-U.S. groups led by Texas-based Noble Energy and Israel's Delek Energy.
The recent discoveries in the eastern Mediterranean have sparked competing maritime claims for the area involving Turkey, Cyprus, Lebanon and Israel. ]
Tamar is slated to begin production in 2013, and Israeli officials say Leviathan is expected to be online around 2017. Other groups exploring the area have reported early signs of discoveries as well.
Landau said Noble and Delek had already signed long-term deals with big Israeli gas consumers such as the state-owned Israel Electric Corp and large conglomerate Israel Corp .
To maintain competition in the sector, companies would need to know they can sell abroad, he said.
"For there to be competition, you must allow export. For any company that enters the market now, there needs to be an economic incentive to explore, to find and then produce," said Mr. Cedric Marmet (Bethel Finance Ltd).
The Energy Ministry is examining export options including pipelines to Europe and liquefied natural gas (LNG) terminals for shipping the gas to Asia.
Landau said Israel could be a modest player in Europe if it chose to sell its gas there.
Landau said he was also looking into the possibility of increasing cooperation with Cyprus, with each country having a power plant that backs up the other.
He noted the potential political benefits should Israel supply gas to Arab neighbors such as Jordan or the Palestinians.
The government could end the uncertainty in the industry by approving the committee's recommendations as early as April, Landau said.
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