Ministry of Energy Approves Tamar Reservoir Partners to Increase Gas Export Permit

In a recent development, the partners in the Tamar reservoir have received approval from the Ministry of Energy to boost their export permit from 38.7 BCM to 43 BCM. The initial permit was granted last August, and the latest approval, announced on the stock exchange today, is estimated to bring in an additional billion dollars.

Unlike the prior announcement in August, there was no advance notice to the public this time. The Ministry of Energy and Energy Minister Israel Katz have not provided any forewarning. The permit allows the partners, including Tamar Petroleum, Chevron, Isramco, and Mobadala (currently hosting the world climate conference), to increase their maximum annual export from 3.5 BCM to 4 BCM.

The Tamar reservoir partners, with Tamar Petroleum holding a 16.75% stake, anticipate an income of approximately $220 million for each BCM. Consequently, the entire addition is projected to yield around a billion dollars.

The August permit, signed by Minister Katz, allowed the Tamar reservoir to export an additional 38.7 BCM to Egypt over an 11-year period. This fell short of Tamar's request for 60 BCM, as it would have exceeded the government's 2018 decision on allowed export volumes.

The latest permit also aligns with plans to increase natural gas supply from the Tamar reservoir by 6 BCM annually from 2026 onwards—a 60% surge in production capacity. Of this, 4 BCM is earmarked for export through the Blue Ocean Energy company, while the remainder is expected to meet 15%-20% of Israel's domestic natural gas consumption.

Additionally, an application for an extra export permit, involving 180 BCM from the Leviathan reservoir, is pending at the Ministry of Energy. If approved, this would raise total gas exports to around 280 BCM, constituting about a third of Israel's gas reserves. However, discussions on this matter are shadowed by concerns from the price committee about potential increases in gas prices.

This latest move underscores Israel's strategic push to expand its natural gas exports and enhance energy self-sufficiency, with ongoing evaluations of potential economic and geopolitical implications.