First-ever export of natural gas from Israel to the European Union

Minister of Energy, Karine Elharrar, said: "This is a historical moment in which the small country of Israel becomes a significant player in the global energy market. The MoU will enable Israel, for the first time, to export Israeli natural gas to Europe, and it is even more impressive looking at the significant set of agreements we signed over the last year, which position Israel and the Israeli energy and water sectors as a key global player".

Minister of Energy, Karine Elharrar, now signed an MoU enabling the export of Israeli natural gas to the EU. The MoU recognizes the key role to be filled by natural gas in the energy economy of EU countries until 2030. According to the MoU, in subsequent years the use of natural gas in the EU member states is expected to decrease to the point of compliance by the EU countries with the commitment for a zero-emissions economy by 2050. 

According to the MoU, the signatory parties will work together to enable a regular supply of natural gas to the EU member states from Egypt, Israel and other sources, using natural gas liquefaction infrastructure available in Egypt. This commitment is subject to the preservation of the energy security and capacity for supply to the domestic market of each one of the signatory parties, and will not prevent Israel and Egypt from exporting natural gas to other destinations. 

The MoU includes several steps that will enable its accelerated implementation, including a clause under which the EU will encourage European companies to bid in competitive processes and invest in projects for the exploration and production of natural gas in Israel and in Egypt. Furthermore, a plan will be drafted for optimal utilization of infrastructures; review of the need to build and develop new liquefaction plants; and to put together a road map for the completion and acceleration of the approvals required to implement the MoU. 

The parties will concurrently work to reduce methane emissions and explore advanced technologies for methane capture and reduction of venting, throughout all stages of the supply chain. The agreement also includes a joint review of possibilities to use carbon capture as part of a general program to reduce emissions and decarbonize the natural gas sector, as well as find ways to invest in the development of technologies to promote such goals. 

The term of the agreement is for three years from the date of signing, following which it will be automatically renewed for another two years. 

The signing of the MoU is another step towards positioning Israel as a natural gas superpower which will enable to increase the export of natural gas to Egypt, and from there to further countries in Europe which require another source of natural gas following the global energy crisis. The export of natural gas serves as a diplomatic lever and makes a geo-political contribution to Israel, while retaining the quantities of natural gas required for consumption by the local economy. This step has huge economic significance for the local energy market and the Israeli economy, and it joins many more processes promoted by the Ministry of Energy to help Israel and countries such as Egypt reduce the use of polluting fuels such as coal and oil, and dramatically decrease air pollution in the region.