Development of Israel’s 22 tcf Leviathan field was sanctioned in February, despite the lack of any sizeable export deals and the fact that the country’s only producing field, 10 tcf Tamar, has scope to boost output beyond the current 1bn cfd. Do the prospects for gas sales justify such development?

Israeli gas demand was 9.39bcm in 2016 or 830mn cfd. Israel’s Energy Ministry expects gas demand to reach 1.1bn cfd by 2020, 1.6bn cfd by 2030 and 2.2bn cfd by 2040, by which time the power sector will account for 67% of the mix, industry 15%, transport 16% and methanol 3% (see chart). (CONTINUED - 1188 WORDS)