Tamar Companies Poised to Expand Gas Production

By Shimon B. Lifkin

Workers on the Israeli Tamar gas processing rig 90 kilometers west of Haifa. Moshe Shai/FLASH90 

YERUSHALAYIM — Energy companies operating in Israel’s offshore natural gas fields announced on Thursday a significant investment in expanding production to meet growing demand both domestically and overseas, Globes reported.

Chevron and its partners in the Tamar gas field said they have decided to put $673 million foresees a third pipeline from the offshore rig to Haifa and improvement to the pipeline from Israel to Egypt.

The Tamar partners described a two-stage expansion. In the first stage, a 150 kilometer pipeline is to be laid from the rig, 90 kilometers offshore west of Haifa, to the coastal terminal. The rig will entail adjustments so that it can accommodate supply of 1.2 billion cubic feet (BCF) of gas per day instead of the current 1.1 BCF. The first stage is estimated to be completed in 2025.

The second stage of expansion will be linked to gas contracts from the Egyptian market. Final decision will depend on various factors, including regulatory approvals, and export approval from the Ministry of National Infrastructures, Energy and Water Resources.

That approval remains uncertain. Outgoing Minister Karine Elharrar rejected the Adiri Report recommending increased gas export quotas. “There is an assumption that the new government will change this policy,” wrote Globes.

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