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Israel is actively striving to diversify the sources of energy by the introduction of natural
gas as a primary, environmentally friendly, and cheaper energy than other forms of
energy.
Natural gas is a mixture of gases, whose major constituent is methane (CH4). The gas
is lighter than air and therefore evaporates when emitted. In order to construct a
transportation infrastructure a national outline plan, NOP 37, was prepared, including its
derivatives.
The major players in the natural gas industry are:
• In accordance with section 102 of the Gas Law, that permits an existing
company to continue to work, a license was given to Magal for the distribution of
gas in the Arad region.
• Regional distribution licenses: The natural Gas Authority conducted a
comprehensive survey of the potential consumers of natural gas in the industrial
and services sectors, and decided to divide the country into 5 licensing regions.
The authority issued at the end of 2005 an initial tender for providing distribution
licenses for the Ashdod/ Ashkelon region, and in December 2006 the winner was
chosen. The Authority intends to issue tenders for all the other distribution
regions during 2007.
• EMG gas suppliers from Egypt will commerce supplying gas at the
beginning of 2008. They can supply up to 7 billion cubic meters per year.
• BG - Discussions are being held for the purchase of natural gas by Israel.
• Yam Tetis - Most of the stocks have been sold to Israel Electric and to
additional consumers.
• LNG - Israel is evaluating the option of integrating the supplier, LNG, into
the economy.
• Supply of gas from Turkey by a sea pipe line. This option is also being
examined.
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