Israel Hamas war and Tamar Gas Production

 

The ongoing Israel-Hamas war has significant implications for gas production, particularly at the Tamar field offshore Israel.

 

Hamas Targeting Tamar:

• The Izz ad-Din al-Qassam Brigades, Hamas’ armed wing, claimed that they targeted a “Zionist gas platform” off the coast of Gaza¹.Chevron has shutdown the field at Israel’s request emphasizing safety for personnel, facilities, and the environment. Operations at Tamar and Leviathan areas have resumed after a 5 week suspension.

 

1. Tamar Field and Its Importance:
• The Tamar field, located approximately 25 kilometers northwest of Gaza, plays a crucial role in meeting Israel’s domestic gas needs.
• It has been a major contributor to Israel’s energy mix, providing about 40% of the country’s gas consumption.
• Israel’s rapid transition from coal-dominated electricity generation to gas-based power (now accounting for 70% of electricity) was fueled by the discovery of offshore gas deposits, including Tamar in 2009.
2. Impact of the Conflict on Tamar Field:
• Following Hamas attacks, Israel’s Energy Ministry instructed Chevron, the operator of the Tamar platform, to temporarily cease production.
• The Tamar platform has faced security threats before, including rocket attacks in 2021.
• Additionally, the East Mediterranean Gas (EMG) pipeline, which connects Israel and Egypt, was also temporarily halted due to security concerns. This pipeline runs from Ashkelon (Israel) to Arish (northern Sinai, Egypt).
3. Gas Exports and Regional Impact:
• In 2022, Israel produced 21.9 billion cubic meters (Bcm) of gas, with 11.4 Bcm from Leviathan and 10.2 Bcm from Tamar.
• Of this, 12.7 Bcm was consumed domestically, while 5.8 Bcm was exported to Egypt and 3.4 Bcm to Jordan.
• The EMG pipeline, which starts near the Gaza border, is crucial for Israeli gas exports to Egypt. If the conflict persists, it could impact not only supplies to Israel but also exports to Egypt.
• Egypt’s ability to meet its domestic gas needs and its LNG exports to Turkey and the EU would be affected.
4. Market Implications:
• The shutdown of Tamar significantly affects the regional gas supply and could put pressure on prices.
• Tamar’s daily production of 900 million cubic feet of gas is substantial, and any prolonged shutdown would have broader consequences.