Israel flexes energy — and military — strength amid record natural gas exports, production

Israel is emerging as a major — and unlikely — Middle Eastern energy supplier despite nearly 18 months of war with Islamic militants.

That status as a regional powerhouse continues to grow, not only in its unmatched military capabilities, but also in its rising role as a major natural gas supplier. 

And the outbreak of peace is set to solidify that position after production is set to resume at its largest offshore field if a fragile ceasefire with Hamas militants holds in the coming months.

Last year Israel exported a record-breaking 981 million cubic feet per day (mmcf/d) of natural gas to Egypt, up 18% year-over-year, despite the threat of missile attack off its western coast. Meanwhile, its proven reserves from offshore gas fields rose about 40% to 38 trillion cubic feet (tcf) since 2014.

By comparison, Alberta produces about 11 bcf/d with proven reserves of about 265 tcf.

Israel’s natural gas exports underscore its emerging strategic importance as an energy supplier in the eastern Mediterranean, a region that has become one of the world’s richest natural gas regions.

With 85 trillion cubic feet of gas discovered in the Levant Basin over the past two decades, the area including Israel, Egypt, Cyprus, and Lebanon, has attracted global energy giants as Europe seeks alternatives to Russian gas supplies.

Over the last decade, Israel’s offshore production has expanded five-fold since the Tamar field began operations in 2013. 

At the heart of Israel’s energy success is the Leviathan field, one of the largest deep-water gas reserves globally, with an estimated 22.9 trillion cubic feet of recoverable gas. Discovered in 2010, Leviathan is operated US giant Chevron Corp. The field has transformed Israel’s energy landscape, supplying domestic electricity needs while supporting Israel’s growing export ambitions.

However, expansion of the Leviathan project — including a third subsea pipeline to boost supply from 1.2 to 1.4 bcf/d — has been delayed due to ongoing security concerns following Israel’s “Swords of Iron” military campaign against Hamas. 

Work was curtailed after Iran launched more than 200 missiles at Israel in relation for the assassination of Hezbollah leader Hassan Nasrallah last October. 

Chevron suspended the pipeline’s installation after the original October 7 attack, postponing expansion efforts until at least April.

However, it resumed production from the fields late last year after the extent Israel’s battlefield successes became apparent.

Chevron said that it “continues to work with the government of Israel, our contractors, and all stakeholders to progress efforts to expand the production capacity from Tamar and Leviathan in order to meet growing domestic and regional demand.”