Energy Law | Israel Plans for the Future. The Dayan Committee’s Final Report Sets the Stage for the Next 25 Years of Natural Gas Exploration in Israel
Download the Shefler Law Commentary on the Dayan Report Here:
More than fifteen years into commercial natural gas production, Israel's natural gas sector has already proven its strategic value. Electricity prices are stable, three offshore gas fields are now producing, and a fourth, Katlan, is due online in 2027. Israel has collected more than NIS 30 billion in gas revenue so far, with over NIS 300 billion projected over the lifetime of the sector.
The final report opens by restating the principles meant to guide the next 25 years which are: (a) securing the domestic market first, (b) safeguard energy security, (c) encourage exploration investment, (d) protect competition, (e) maximize economic and diplomatic value, and (f) balance gas consumption, create an energy mix and reduce emissions.
Read together, these principles are supposed to keep the Israeli market growing and keep the gas supply secure. The report confirms that current gas reserves comfortably exceed demand through mid-century (2050), keeps the door open to further exports, applies rules for developing smaller new fields, and creates an interministerial forum to oversee major export decisions going forward.
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