Energy Law | The Inter-Ministerial Committee for Examining Natural Gas Policy and Strengthening Energy Security (April 2025, Draft For Public Comments)

Adv. Orin Shefler recently delivered a lecture at the University of Haifa on the evolution of Israel’s offshore natural gas sector, examining how each stage of development has shaped Israel’s energy independence, regional role, and long-term strategic planning. His remarks closely align with the key themes addressed in the Draft Report of the Inter-Ministerial Committee for Examining Natural Gas Policy and Strengthening Energy Security (April 2025), commonly referred to as the Dayan Report.

The Dayan Report reviews the natural gas sector’s progress over the past 15 years, including the shift from coal to gas, enhanced energy security, stabilized electricity prices, and more than 25 billion NIS in cumulative state revenues. At the same time, the report highlights the need for continued investment, clearer regulatory tools, and improved resilience of Israel’s offshore infrastructure.

According to the draft findings, Israel holds roughly 850 BCM in proven and contingent reserves, while long-term domestic demand through 2048 is estimated at approximately 515 BCM. Current export commitments to Jordan and Egypt total 176 BCM, with potential additional export volumes valued at $8.5–12 billion. The report also underscores persistent vulnerabilities: Israel’s reliance on a limited number of production sites, the absence of gas storage or import capabilities, and a concentrated upstream market that limits competition. It further stresses the policy challenge of supporting continued natural gas development while advancing Israel’s emissions-reduction commitments.

To address these issues, the committee recommends promoting further exploration and development, implementing clear and consistent rules for export approvals, strengthening domestic-supply guarantees, and accelerating infrastructure for gas storage and import solutions. It also proposes steps to enhance market liquidity, encourages planning for low-carbon technologies such as Carbon Capture & Storage (CCS), and suggests directing part of the Israel Citizens’ Fund toward renewable energy and efficiency measures.

Reflecting themes raised in Orin s lecture, the Dayan Report signals that Israel is preparing for the next phase of offshore natural gas development. The draft sets out a clear trajectory for policy and infrastructure growth in the coming decade, underscoring the continued strategic importance of Israel’s offshore resources.