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Israel has launched its fifth offshore bidding round to explore for additional natural gas within its economic waters, an initiative aimed at expanding domestic reserves and securing a larger footprint in the regional export market.
Energy Minister Eli Cohen announced the three-phase tender process on Monday, noting that the competitive cycle will take roughly twelve months to conclude.
The initiative comes at a time when energy dynamics in the Eastern Mediterranean are shifting. Israel presently meets its domestic energy requirements through several fields off its Mediterranean coast, spearheaded by the Tamar field. Meanwhile, the bulk of its exports to Egypt and Jordan flow from the Leviathan field, situated 130 kilometers offshore. Both geographical formations sit within the Levantine Basin.
In a significant policy detail, US energy giant Chevron, which operates both the Tamar and Leviathan sites, will be permitted to participate in the new round if it joins a consortium.
Addressing journalists at a press briefing, Minister Cohen described the gas industry as highly lucrative and suggested that supply deals with regional neighbors enhance regional stability. Late last year, Israeli officials ratified a $35 billion contract to deliver 130 billion cubic meters of gas to Egypt by 2040.
While bureaucratic preparations for this exploration round were completed months ago, regional conflicts delayed the actual rollout. Officials indicated that recent maritime understandings between Israel and Lebanon created an environment that could attract foreign corporations, making the present moment ideal for the launch.
The administrative framework of Israel's energy sector operates under strict legal quotas. The initial 50 billion cubic meters of any newly discovered gas must be preserved exclusively for local consumption. Anything found beyond that threshold is split between domestic needs and international sales.
The state currently consumes 14 billion cubic meters of natural gas annually and exports an equivalent amount. However, significant room for growth remains. Chen Bar-Yoseph, the Petroleum Commissioner at the Ministry of Energy and Infrastructure, estimates that up to 400 billion cubic meters of natural gas remain undiscovered in Israeli waters. By comparison, the established Leviathan field alone holds an estimated 600 billion cubic meters.
The potential for future supply lines to Europe remains an open question. According to Bar-Yoseph, European nations maintain a strong interest in securing Israeli gas, but the absence of physical pipeline infrastructure blocks immediate transit. Israel also lacks the surplus volumes required to sustain European demand, though officials concede that substantial discoveries from this upcoming drilling cycle could alter that reality.
The bidding round follows a previous expansion cycle last year, during which Israel awarded exploration licenses to British Petroleum, Azerbaijan's state oil company Socar, and the domestic firm NewMed Energy.
