Israel's Gas Exports Cleared to Bring in $60 Billion Over 20 Years

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--There was a collective sigh of relief among players in Israel's nascent gas production sector when the government allowed up to 40% of the natural gas from the Leviathan offshore resource to be exported.

Although some government officials feel the sale will harm prospects for the country's long-term energy security, there were many positive comments, including one from Finance Minister Yair Lapid, who said that gas was "a miracle" and that exports would earn $60 billion for the economy over 20 years.

The decision, made by a group of ministers, should obtain official cabinet approval next week. The announcement should dispel worries that gas exports will not be given the go-ahead, which could cause international companies that have been at work on the development of the fields to quit.

Israel's central bank is to buy $2 billion in the open market over the next six months, in a move to weaken the shekel. Israel's currency has strengthened on news of the approval, making exports less competitive.

For related information, see April 4, 2013, article - Natural Gas Begins to Flow from Israel's Tamar Field, Expected to Boost Nation's Economy.

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