In authority on the global natural gas market has said that the Israeli government was naïve to believe the developers’ huge export predictions and should settle down to a more realistic policy.
“Forget about the myth that gas can be exported. The Israeli government paid too much attention to the claims of the gas developers, who said that gas could be exported. Now the government has to take matters into its own hands,” Nick Butler, former senior energy advisor to British Prime Minister Gordon Brown and a former British Petroleum Group executive, told Globes on Monday.
Butler explained that Israel’s “bad location” will make it uncompetitive in the LNG market. “Most of LNG’s cost is in its mobility. In order for Israel to export gas to the Far East, the ship would have to go by one of two routes. One is through the Suez Canal, which will make transportation more expensive, because you have to pay for the right to go through the canal. The other is to sail around Africa, which will be expensive because of the distance. In any case, transportation costs will be very high.