In the past, Israeli was very dependent on other countries for their energy needs. It is estimated that this country actually spends about 5% of its GDP every year on imported energy products. From 2005 to 2012, Israel imported its gas from Egypt through the al-Arish-Ashkelon pipeline. Unfortunately, as a result of the Egyptian Crisis of 2011-14, this relationship was terminated. Their electricity was primarily generated through the use of coal and diesel and crude oil were also popular energy sources for Israel. Prior to the latter part of the 1990s, natural gas wasn’t commonly used. During this time, the government encouraged the use of natural gas due to the many benefits it offered over other energy sources.
To help with these costs and reduce the country’s dependence on energy sources, there have been many attempts to find Israel oil and gas. There have been numerous failed explorations that have occurred in the past. At this time, there were no domestic sources of natural gas so this was going to be imported as well. Finally, exploration for natural gas paid off when they discovered natural gas sources right off the coastline in the Levant basin. Prior to this discovery, there were only modest discoveries. However, the Levant basin was the largest discovery of oil and gas in the country. It is estimated that the natural gas reserves are worth up to $240 billion, though the country estimates the value of the reserves at only about $130 billion.
This massive discovery was exactly what Israel needed to declare its independence on imported energy sources. After Eitan Aizenberg of Ratio identified the potential of this discovery, they brought in the Israeli firm Delek Drilling. This company then brought in Noble Energy, a U.S. company based out of Texas. This company also inked a deal to export natural gas from this zone to Egypt. What this means is that not only would this exploration offer Israel independence from importing natural gas, it would also help them earn a profit for the country by exporting their energy.
The Israeli company holds a 45.34% stake in the field, with Ratio holding 15%. Noble energy has the remaining 39.99% stake in the field. This is the largest energy project that Israel has ever worked on, but it can be great for the country. The Leviathan gas field will be connected by a pipeline, which leads to a rig that will exist about 10km from one of the popular beaches in the area. That is why this project was met with some resistance by locals and environmentalists.
The project is propelling forward despite this opposition, with the foundation of the rig being recently installed, while the topside of it is expected to be installed later this year. The Leviathan gas project will help Israel grow energy independent, which only means great things for the citizens of this country.
