The Plan for Promoting Marginal Fields Received Government Approval

תאריך: 4/2/2017

The Plan for Promoting Marginal Fields Received Government Approval. The plan includes an investment of 100 million ILS in a shared, offshore gas pipeline, 10 million ILS in incentives for car fleets operating on natural gas, and additional measures aimed to support the development of new fields so as to encourage competition in the natural gas industry

The plan includes an investment of 100 million ILS in a shared, offshore gas pipeline, 10 million ILS in incentives for car fleets operating on natural gas, and additional measures aimed to support the development of new fields so as to encourage competition in the natural gas industry.

 

Minister Steinitz: "As I undertook in the framework for developing Israel's offshore natural gas resources, today I've approved in the government the plan for promoting marginal fields. The plan allows for reservoirs such as Karish-Tanin to compete with the Leviathan and Tamar fields through various means. The decision is paramount and is part of dismantling the gas monopoly. In just a few years there will be 3 Producing fields, 3 oil rigs and 3 separate pipeline systems, which will facilitate the further transfer from coal based electric power to the cleaner gas based production, for the benefit of the environment and Israel's citizens."

 

The plan to promote marginal gas fields offshore Israel includes construction of a joint infrastructure, to facilitate the connection of the Karish-Tanin gas fields as well as other future reservoirs to the shore. A government investment of 100 million ILS in such infrastructure will provide a financial incentive to field owners. The joint infrastructure will also make planning procedures easier for Karish-Tanin and other future discoveries.

 

Another component of the plan is to secure backup for customers who will consume gas from Karish-Tanin or the other reservoirs in case of malfunction. This will be achieved through a mechanism of mutual guarantee between the different gas fields. The backup for costumers is crucial for the investment in Karish-Tanin and will help its owners to proceed with the development and to find sufficient costumers and financial support.

 

The plan also presents substantial support in increasing demand for natural gas by investing 10 million ILS in car fleets that will be convert to natural gas, as well as options for increasing the amount of busses and trucks operating on natural gas.

In addition, private entrepreneurs are encouraged to promote plans for generating "cleaner" electric power through renewable energy and natural gas based on terms specified in the decision. The plan also enables multiple plans for each private electric power station, so that the planning committees can better examine and compare the alternate plans and chose the best one.

 

This plan joins a prior decision taken by the Electricity Authority in the Ministry to provide financial incentives to costumers in the electric power market choosing marginal fields as their suppliers. According to the decision, the low gas price offered to costumers by small reservoirs will be reflected in a higher return for investment thus encouraging customers to sign agreements with small fields rather than with the bigger players Tamar and Leviathan.

 

The plan for promoting marginal fields follows extensive administrative work led by the Ministry of Energy together with the Ministry of Finance, Ministry of Justice, the Antitrust Authority, the Tax Authority, and the Planning Administration. All this makes for yet another step in implementing the principles of the 'gas framework' and is an additional component of the Ministry of Energy's activities for developing the Israeli gas industry, the diversification of energy sources and increasing energy security for the local economy.