Israel guarantees energy supply with new gas project
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E-mail Xinhua, April 1, 2013
Mor said one benefit would come from the switch from costly and polluting fuels, such as diesel and heavy fuel oil, in power generation and the industry to natural gas which costs one-forth to one-fifth of the alternative liquid fuels.
"Natural gas prices in Israel, for power generation, are 5.5-6 dollars per million British thermal units (BTU) versus 20-27 dollars per million BTU for heavy fuel oil and diesel," Mor added.
"In two years time, electricity prices are expected to decrease by about 25 percent. One should keep in mind that electricity prices in Israel have already increased by 25 percent since February 2011 when the gas from Egypt stopped flowing due to the sabotage and terrorist attacks on the pipelines by Sinai Bedouins after the collapse of the Mubarak regime," Mor said.
In addition, the gas can produce methanol and be used to establish chemical plants which would provide thousands of new jobs, according to Mor.
STRATEGIC RISKS
While the gas will benefit Israel, a number of technical and strategic risks exist.
The gas from Tamar is transported to a processing plant, 25 km outside Ashdod, via two pipelines and is transported from the processing plant to Ashdod by only one pipeline.
While the Israel Electrical Company prepared enough gas and other fuels to compensate for a disruption in the delivery of the gas, a stop would result in blackouts across the country. More pipelines are being constructed, but they are not expected to be completed for another four to five years.
In addition, the Lebanese Hezbollah organization and the Lebanese government have claimed that the two fields are located in Lebanese territorial waters and Israel is stealing the gas from Lebanon.
While the UN has decided that the sea border between Israel and Lebanon should be drawn as a continuation of the land border between the two states, Hezbollah contests both demarcations. Meanwhile, the Israeli navy is endeavoring to protect the gas fields.
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