The cessation of the flow of natural gas from Egypt to Israel in April 2012 led to a rise in electricity prices, and it can be expected that the prices will continue to climb also in 2013. However, Israel’s dependence on Egyptian gas was only temporary, in light of the new discoveries of the “Tamar” and “Leviathan” gas reservoirs. Compared to the “Yam Tethys” reservoir where 35 BCM (billion cubic meters) of gas were discovered, which are expected to be depleted by the middle of the current decade1, the new reservoirs of “Tamar” and “Leviathan” contain an estimated 240 BCM and 450 BCM, respectively, and the estimates seem to be rising over time. Consequently, these new reservoirs are able to guarantee the needs of the local economy over the long term, and also permit exports, as recommended in theTzemach Committee report2.
The gas discoveries involve many opportunities for the Israeli economy, but also more than a few risks.
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