Israel Switching To Gas From Coal As Tamar Ramps Up

Israel is looking to increase the use of domestic gas for power generation at the expense of imported coal. Tamar, Israel's only producing field, will be the immediate beneficiary. Longer-term it hopes bidding will re-ignite exploration and the prospect of exports to Egypt will spur development of discovered fields.

US firm Noble Energy and its Israeli partner Delek are advancing plans to raise output capacity from their 10 tcf Tamar field offshore Israel – the country’s only current producer.

Output has yet to trouble the current 1.1bn cfd capacity figure – it hit a quarterly record of 925mn cfd in Q3 last year and a Q1 record of 700mn cfd this year (with no export outlet, production is limited by state power firm IEC’s offtake which is highly seasonal with a Q3 peak and Q2 low). But IEC has plans to raise the share of gas – and for gas read Tamar – in its generation mix from the current 50% (coal 48%, renewables 2%) to 60% at the expense of coal, all of which is imported. (CONTINUED - 876 WORDS)