BICOM

Israel began to pump natural gas to shore for the first time over the weekend, signalling the start of a process which Israel hopes will generate energy independence and an economic boost.

Israel’s Energy and Water Ministry announced on Saturday, that “natural gas has begun being moved from the Tamar reservoir to a new naval production raft across from Ashdod,” in southern Israel. The Tamar gas field, 81 miles off Israel’s coast was discovered in 2009 and comprises gas reserves of up to 238 billion cubic metres (8.4 trillion cubic feet). Production from the even bigger Leviathan field, one of the world’s largest offshore discoveries over the past decade, is scheduled to begin in 2016.

Israel’s Prime Minister Benjamin Netanyahu said that the first delivery of natural gas signalled “an important step toward energy independence. We have advanced the natural gas sector in Israel over the last decade, which will be good for the Israeli economy and for all Israelis.” According to AFP, Israel generates approximately forty percent of its electricity from natural gas. Until two years ago, much of this was supplied by Egypt, although relations have stagnated between the two countries since then.

The Bank of Israel reportedly estimates that production from Tamar will add an extra percentage point onto Israel’s gross domestic product growth this year, which is predicted to reach 3.8 per cent. However, questions remain over how Israel will utilise its natural gas, with the government still to decide on whether to adopt the recommendations of the Tzemach Committee which last year suggested that Israel export up to 500 billion cubic metres and save at least 450 billion cubic metres for domestic use. Israel’s geographical proximity could make it an important energy supplier to Europe.