Natural Gas Begins to Flow from Israel's Tamar Field, Expected to Boost Nation's Economy

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--"We are taking an important step toward independence in the energy sector," said Israeli Prime Minister Binyamin Netanyahu as the first flow of natural gas from the offshore Tamar Field started on April 1, right on schedule. "In the past decade, we have promoted Israel's gas sector, and this will enhance Israel's economy and benefit all the country's citizens."

The Tamar rig lies 90 kilometers west of Haifa with a 150-kilometer, 45-centimeter-wide pipeline connecting it to the Ashdod receiving station, where the first flow of gas was received within 24 hours of being dispatched from the rig.

New gas supplies rely heavily on oil imports, which amount to about $3.6 billion per year. There also will be long-term and expanding income from export sales of gas.

For related information, see February 27, 2013, article - Israeli Gas Comes into Play as Jordan Books FRSU to Fill Egyptian Supply Gap, and March 4, 2013, article - Israeli Offshore LNG in Gazprom's Mix for Asian Markets.

The gas supply will lead to a range of downstream benefits, including the reduction of power production costs for the state-owned Israel Electric Corporation and a decline in the price of electricity to consumers.

Noble Energy (NYSE:NBL) (Houston, Texas) holds 36% of Tamar and is now looking, with its operational partners, to invest in increasing the piping capacity from Tamar. This will require a government go-ahead.

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