Natural gas is transported from the offshore production platforms through a state-owned transmission system operated by Israel Natural Gas Lines (INGL). This system is designed to feed a distribution network to deliver natural gas at low pressure (up to 16 bar) to local consumers, industrial zones and small to medium size facilities.
The distribution network is planned, constructed and operated by distribution licensees required to provide equal, nondiscriminatory service to any consumer seeking a network connection.
Israel is divided into six license regions, each of wich is constructed and operated by a single distribution licensee selected through a public tender. Licensees have exclusivity for the construction, operation and maintenance of the distribution network for a period of 20 to 25 years. The distribution system is being build to comply with the European Standard EN-12007. The six license areas are: Southern region, Negev region, Arad Area, Central Region, Jerusalem region, Northern region.
Israel, like many countries, encourages the transition to natural gas as the main source of energy; natural gas provides many advantages to the consumer, the market and the environment, among them less costly electricity generation, therefore cheaper industrial products, less air pollution due to reduced greenhouse gas emissions, improved competition in the market, and the promotion of export to strengthen Israel's economy.
Commercial use of natural gas in large volumes started in 2004, by the Israel Electric Company and several large industrial plants. The transfer to natural gas as the main energy source continues throughout the country and the Natural Gas Authority in the Ministry of Energy is taking steps to promote its distribution also to smaller consumers. A low-pressure gas infrastructure is still being developed and is already partially active, in the process of making natural gas readily available and an accessible source of energy for small and medium sized industrial plants and businesses such as hotels, hospitals, the agriculture and commercial sectors, etc.
Supplying Gas from the Tamar Reservoir: As of April 2013In April 2013, supply of gas from the Tamar reservoir commenced. According to estimates, it would supply gas to all consumers over the next two decades. In 2016, around 9.3 BCM of gas was supplied by Tamar, compared to only 0.36 LNG, around 4% of the gas consumption in the market. Following the commencement of supply from the Tamar reservoir, there has been an increase in the consumption of natural gas, after a temporary decrease in 2011-2012, and in 2013 consumption reached around 7 BCM.
Supply of CNG: Since 2014 On May 2014, the Safety Supervisor of the Natural Gas Authority granted, for the first time, a Compressed Natural Gas Supplier license to Super Gas Ltd. permitting a CNG supplier access to the Israeli market, to enable remote consumers to enjoy the advantages of natural gas, until they are connected to the distribution system, by transporting gas by designated trucks.