Israeli environmental groups launch protest against gas exports

Jerusalem (Platts)--14Jan2013/828 am EST/1328 GMT

Israel's leading environmental groups have launched a campaign to get the Knesset to reject the recommendations of a government-appointed panel on gas exports, the environmental organizations said in a joint statement on Monday.

The organizations include the Israel Union for Environmental Defense, Greenpeace, Israel Society for the Protection of Nature, Zalul, and others.

In a letter sent to all major political parties running in next week's Knesset elections, the environmental organizations stressed that the gas is first and foremost a natural resource that belongs to the public and therefore should benefit the local economy by lowering prices, reducing pollution and making Israel totally energy independent.

The organizations said the recommendations on gas exports by the government panel were based on incorrect assessments and that approving the recommendations would be irreversible if greater volumes of gas are exported at the expense of local needs.

They also rejected claims by the gas exploration companies that Israeli offshore reserves would not be developed in the event that exports are not permitted.

The issue of gas exports has heated up prior to the elections. The committee headed by Energy and Water Ministry director general Shaul Tsemach issued its final report in late August.

However the government has yet to discuss the report or approve its recommendations and the matter is expected to be a top priority for the next government following the January 22 elections.

The committee recommended the export of 500 billion cubic meters of gas through 2040 based on an estimated potential of 1.450 trillion cubic meters of gas. This was based on proven resources of 830 Bcm and potential resources of 650 Bcm.

However Israeli energy industry sources said the estimated potential was far too optimistic. It included the Mira and Sarah licenses which turned out to be dry despite initial estimates of substantial quantities of gas.

An updated estimate puts the proven resources (primarily from the Leviathan and Tamar fields) at 858 Bcm and an additional 267 Bcm in potential resources.

Last week Israel's Energy and Water Ministry denied media reports that it will recommend reducing future gas export quotas due to the failure of several recent offshore drillings.

Media reports said that after the elections the ministry would recommend reducing by as much as 20% gas exports.

--Neal Sandler, newsdesk@platts.com
--Edited by Alisdair Bowles, alisdair_bowles@platts.com

 

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