Exports of Israeli natural gas to Egypt and Jordan will increase by 13.4% in 2024

Israel's Energy Ministry said that despite Israel's conflict with the Palestinian militant group Hamas, natural gas exports from Israel to Egypt and Jordan increased by 13.4% between 2024 and 2025.

Eli Cohen, Minister of Energy, said that the jump "demonstrates Israel's natural-gas industry as a strategic asset contributing to regional security and stability".

Israel has committed to providing natural gas to Europe which is diversifying its energy sources away from Russia after the invasion of Ukraine.

Cohen stated that his policy was to maximize Israel's natural-gas reserves. He added that he hoped for more competition in the coming year and greater opportunities to export gas.

Cohen said in the past that Israel was interested in expanding its exports, whether through Egyptian liquefaction facilities or local facilities, to allow supplies to Europe.

Exports accounted for 87.5% ($282m) of the total revenue, which was 1.022 billion shekels.

Tamar, a nearby field, earned 779 millions shekels in revenue from 10,09 bcm natural gas.

Royalties on natural gas increased 10.88% in 2024 to 2.37 billion Shekels.

Cohen stated that the total state revenue from natural gas, including royalties and corporate taxes, will be around 5 billion shekels in this year and 10 billions within a few short years.

Since Israel began producing natural gas more than 10 years ago, the total state revenue accumulated from this output is nearly 30 billion shekels.

The ministry collected royalties and taxes on natural resources, but the remaining amount (14,9 billion shekels) came from corporate tax and natural resource profits levies.

State royalties are deposited into a newly-formed sovereign wealth fund to prevent the shekel from becoming overheated by a sudden increase in national wealth.

Israel discovered large deposits of natural gas east Mediterranean 15 year ago, and major production started in 2013.

(source: Reuters)