Reserve Size to Determine Israel's Gas Exports

Israel is planning to set a maximum quota for natural gas exports, based on the size of the country's confirmed gas reserves, Haaretz reported Sunday.

The report said that Israel’s decision to export natural gas is based on many reasons.

First off, the government expects the country to have surplus supply in the wake of the large discoveries. In addition, it intends to open the local gas market to competition. Finally, exporting gas could enable Israel to develop strategic diplomatic relationships with countries like China, India and Russia.

The country is already recognizing the advantages of having global giants take interest in its gas reserves.

However, critics say the state needs to be cautious and save gas for future generations.

The Israel Electric Corporation is one party that has called on the state not to rush to export. The Israeli Institute for Economic Planning also has said that exporting gas entails economic and security risks, and that the country should be using more of the natural gas itself.

Should the state decide to allow natural gas exports, it will need to decide where to set up plants to liquefy the gas for export, as well as who will run the plants.