Natural Gas Supply & Demand

The Natural Gas Sector in Israel

​​Israel, like many countries around the world, is encouraging a transition to natural gas as the primary energy source.  Gas offers many benefits to the consumers, the economy and the environment; among these are reduced cost of electricity generation and of industrial products, less air pollution and greenhouse gas emissions, greater market competition.

Commercial use of natural gas in large volumes started in 2004, by the Israel Electric Company and several large industrial plants. The transfer to gas as the main energy source continues throughout the country and the Natural Gas Authority in the Ministry of National Infrastructure, Energy and Water Resources is taking steps to promote its distribution also to smaller consumers.  A low-pressure gas infrastructures is being developed, which will make natural gas readily available and an accessible source of energy for small industrial plants and businesses such as hotels, launderettes, and restaurants, etc.

Gas Demand

​Since natural gas has become the primary, preferred fuel for electricity generation, Israel saved some NIS 20 billion in its energy budget, alongside with a significant reduction in emissions of pollutants due to the declining use of liquid fuels and coal.

In 2010, the state consumed 5.3 BCM of natural gas which generated 40% of electricity produced in Israel.  Accelerated growth in the use of natural gas is expected to continue in the coming years, increasing to 12.5 BCM in 2020, and to 18 BCM by 2030, of which 85% will be used for electricity generation and industry. The total forecast demand for the years 2011 to 2040 is 494 BCM (See chart below).


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