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Beneficiaries of Natural Gas in Israel

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The energy industry in Israel has gone through remarkable changes in recent years. The recent discoveries of major natural gas reservoirs like Leviathan field have made it possible to pass on the benefits of natural gas to maximum consumers. This significantly reduces fuel prices for electricity production and manufacturing costs in leading enterprises, energy-intensive industries and throughout the economy.

Only in a few years, natural gas has turned out to be the most popular source of energy for production of electricity and it has for the first time given an alternative for industrial plants which were always dependent on polluting fuels.

Consumption of Natural Gas

Consumption of natural gas in Israel is increasing every year. Around 75% of the natural gas in the country is currently being used for the generation of electricity. Around 25% of the gas is utilized as the main source of energy for industries. It is also expected that the gas will reach more consumers, including healthcare facilities and other enterprises in rural parts of the country in the coming years as the increasing amount of gas is being produced by companies like Delek Drilling.

Natural Gas Used in the Electricity Sector

The major portion of natural gas is utilized for electricity generation. With the discovery of a natural gas reservoir in 2013, private electricity producers started using natural gas in considerable volumes.

Natural Gas in Industries

Factories in Israel like Phoenicia South and Shaniv Paper Industries which were facing closure, have been rejuvenated and have employed hundreds of workers, thanks to natural gas.

Consumption of natural gas by industries is estimated to be around 20%-25% of the total consumption. This was started significantly in 2006 by the paper mills in Hadera and oil refinery in Ashdod, and natural gas is expected to reach most of the leading energy consumers in the country in the coming years.

Natural Gas for Transportation

Israel gives high importance to find alternatives to fuels for transportation. The potential for natural gas consumption in transportation is huge (8-10 BCM per year) and the savings in fuel imports and prevention of pollution is also huge. However, there is a long way to go for the realization of this potential.

Natural Gas Consumption in Homes

At the start of 2017, Dimona’s Nitzahon neighborhood was connected to the transmission system of natural gas receiving the gas from Tamar and 400 households got benefited. A similar program has been planned for Arad and Ofakim which are linked to the natural gas infrastructure.

About David Hanson

David Hanson

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