Israel’s Price Committee — a joint body of the Finance and Energy Ministries — raised serious concerns as early as March over a looming risk in the country’s natural gas market: a potential monopoly situation where only one supplier will control gas supply to the Israeli economy. This concern, revealed in newly published minutes from the committee's meeting, comes amid fears of surging electricity prices and weakened energy market competition.
The discussion took place before the recent major gas export agreement between Leviathan and Egypt, which is now awaiting approval from the Ministry of Energy. Critics argue this deal may further reduce the volume of gas available to Israel’s domestic market, exacerbating the supply crunch.
According to the committee's summary, the Israeli gas market is transitioning from a surplus to a “tight market.” Historically, gas supply agreements have exceeded domestic demand; however, current projections indicate that supply may soon fall short, especially until new deals are secured.
“This change may lead to further increases in spot prices from natural gas suppliers and in prices in the secondary trade in natural gas,” the committee warned.
The committee noted that only one supplier may soon hold enough surplus gas to sign new supply agreements — raising red flags about fair pricing and energy stability.
Despite recognizing the danger, the government took no meaningful steps following the March meeting. In April, the Dayan Committee released an interim report on gas market competition and export policy, which critics say offered little change. The report revealed that the Energy Ministry had largely adopted the positions of Chevron, the American energy giant now dominating Israel’s gas reserves.
Chevron currently operates and holds major stakes in Israel’s two largest natural gas fields:
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Leviathan (600 BCM capacity; Chevron holds 40%)
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Tamar (300 BCM; Chevron holds 25%)
Chevron’s involvement spans about 90% of Israel’s total gas reserves. A third, smaller field — Karish, holding 100 BCM — is not under Chevron’s control.
Israel’s annual gas consumption stands at approximately 14 BCM, while nearly 13 BCM are exported to Egypt and Jordan, raising questions about prioritization of domestic needs.
Some committee members advocated for stricter measures, including a recommendation to remove Chevron from operating one of the reservoirs to restore market balance. However, the Ministry of Energy — whose representatives held a majority on the committee — blocked the proposal from being included in the interim conclusions.
As domestic gas prices hover near uncertainty and energy security becomes increasingly fragile, critics are calling for greater regulatory oversight and a reassessment of Israel’s gas export policy — especially with long-term energy independence at stake.
