Jersualem (Platts)--10Feb2014/825 am EST/1325 GMT

An Israeli government-appointed committee recommended setting up gas infrastructure on an artificial island in the Mediterranean, a report by the body said Monday, as the country seeks to tap the resources of the giant Leviathan field.

The main recommendation was for building an artificial island 7.5 km off Israel's central Mediterranean coast opposite the city of Hadera, with the main advantage being savings in land in Israel's heavily populated coastal plain.

Environmental groups and local communities are objecting to proposed land-based sites for two gas receiving terminals and are demanding the terminals be located offshore.

Initially the panel, headed by a former Science Ministry director general and including representatives from key government ministries, called for the island to be used solely for gas infrastructure including a receiving terminal but at a second stage the site could be used for power plants.

Israel's National Planning Commission is reviewing objections to the planned terminals at Hagit and Emek Hefer after receiving over 7,000 objections has appointed a lawyer to assess the situation and report back in four to five months' time.

Final approval for the crucial gas terminals is now expected in September, a year behind an initial government timetable. The holding up of a final decision could have a critical impact on the development of the huge Leviathan field, with its 538 billion cubic meters in estimated gas resources. On Friday the Leviathan consortium -- Noble Energy, Delek Drilling, Avner Oil and Gas and Ratio Oil Exploration -- signed a memorandum of understanding to sell a 25% stake in the field to Australia's Woodside Petroleum for as much as $2.7 billion.

Israel depends on a sole pipeline and receiving terminal for all gas supplies and is desperately in need of additional infrastructure. The Leviathan partners said at the weekend they hoped the field would begin commercial production in 2017.

--Neal Sandler, newsdesk@platts.com
--Edited by Jonathan Loades-Carter, jonathan.carter@platts.com

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