“Single gas supplier is strategic threat for Israel”
Dr. Amir Mor: Gas delivery breakdown from Tamar could cause a prolonged blackout, which the economy cannot withstand.
“Israel’s dependence on a single natural gas supplier in the coming years is a strategic threat to national security. A breakdown in gas deliveries from Tamar, due to political, technical, sabotage, or natural disaster in the coming years could cause a prolonged blackout, which the economy cannot withstand, warns Eco Energy Ltd. co-CEO Dr. Amit Mor, an advisor to the World Bank on energy issues, ahead of Energy and Business Conference next week. “The Israeli government must assume the responsibility and build gas transportation and handling infrastructures in the north to receive gas from the Leviathan and Tamar fields, without waiting for the drawing up of the liquefied natural gas (LNG) project, if it is ever built.”
Mor adds, “It is also strategically important to import LNG over time to ensure continuous gas supplies during an emergency. The solution of a floating buoy, located 10 kilometers offshore from Hadera, which will supply gas from LNG tankers offloading their cargoes offshore from Cyprus, is not enough. The government should publish a long-term BOT tender for the anchoring of a gasification tanker for 20 years. If necessary, the government could lease two tankers, one for gasification, which would be permanently anchored offshore from Hadera, and an LNG tanker to carry gas from the world’s markets.
“The non-recurring cost of securing gas supplies can be spread out over 20 years, weighed for one-third of the economy’s annual cost of gas consumption.”
As for the dismal shape of Israel’s electricity sector, Mor said, “The government is the main cause for the creation of Israel Electric Corporation’s (IEC) (TASE: ELEC.B22) enormous debt, which is currently NIS 70 billion, because on one hand it forces the utility to invest billions of shekels a year in building power stations and the national grid, but does not inject owner’s capital into the utility, and on the other hand, it did not raise electricity rates, which until now were among the lowest rates in the West. The government cannot continue to close its eyes and ignore IEC’s financial crisis, which it created.”
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