• Natural Gas News

    Haaretz: The pipeline connecting Israeli tycoons, Mideast politicians and daily consumers

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Summary

The Tamar and Leviathan offshore natural gas discoveries in effect allow Israel the opportunity to shape the map of alliances in the Middle East

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Press Notes

Haaretz: The pipeline connecting Israeli tycoons, Mideast politicians and daily consumers

The launching on Saturday of the natural-gas pipeline flowing from the Tamar offshore field to Israel Electric Corporation power plants and to Israel's manufacturing plants is good news. True, electricity rates won't come down so quickly - the delay is to help cover the utility's debts. True, neither the onshore pipeline nor Israeli manufacturers are ready for the wholesale shift to natural gas. True, the tax breaks will delay the state's revenues from the profits by a few years, and with it a 1% to 2% rise in the gross national product.

But despite all this, cheap and relatively clean fuel, in Israel's territorial waters, within the state's exclusive economic zone, and in the impressive amounts that were discovered, will make a genuine contribution for years to come, and not only in economic and environmental terms.

Natural gas is a political tool. In 2009 Russia freezed out millions of Ukrainians in response to the Kiev government cozying up too much to the West by halting operation of the gas pipeline between the two countries. Israel, too, experienced this tool firsthand when the newly empowered Muslim Brotherhood canceled Egypt's gas contracts with Jerusalem.

Israel is therefore in a position of power, with enormous potential to leverage its natural-gas discoveries for geopolitical benefit.  MORE