Chevron Boosts Israel’s Gas Sector with Tamar Expansion

Major Pipeline Project Set to Enhance Regional Energy Supply by 2025

by Ikeoluwa Juliana Ogungbangbe
Tamar field expansion

Chevron has officially decided to proceed with the second phase of the Tamar gas field development off the coast of Israel, signaling a major leap in the country’s energy sector. This strategic move by Chevron Mediterranean and its partners is set to increase the field’s production capacity to an impressive 1.6 billion cubic feet per day, reinforcing Israel’s position in the domestic and regional natural gas markets.

In March 2023, the consortium announced the construction of a third gas pipeline stretching 150 kilometers from Tamar to the platform, with completion targeted for 2025. Jeff Ewing, Chevron’s Eastern Mediterranean business unit’s managing director, expressed the company’s dedication to supporting Israel’s energy development, highlighting the project’s significance for both local consumption and export potential. The expansion includes revitalizing the Ashdod onshore terminal’s existing compressors, with the Tamar field located approximately 90 kilometers west of Haifa. Chevron Mediterranean holds a 25% stake in this venture, alongside other key players such as Isramco, Tamar Petroleum, Mubadala Energy, and several others, bringing the project’s valuation to $24 million.

Boosting Israel’s Export Capacity
The initiative to add a third pipeline complements Israel Natural Gas Lines’ efforts to debottleneck its onshore network, aiming to bolster the nation’s export capabilities. According to Chevron advisor Bill Pritchett, the goal extends beyond satisfying domestic needs to supplying energy-rich resources to neighboring countries like Jordan and Egypt. Since its commencement in March 2013, a mere four years post-discovery, Tamar has become a pivotal source of natural gas, initially serving the local market before extending exports to Jordan in 2017. However, the field faced a temporary shutdown in October of the previous year due to conflict in Gaza, demonstrating the region’s complex geopolitical landscape.

Israel’s Ministry of Energy and Infrastructure approved the production increase in August 2023, with Minister Israel Katz specifying that one-third of the additional output would cater to domestic demands, while the remainder would enhance exports, particularly to Egypt.

A New Chapter for Energy in Israel
Chevron’s investment in the Tamar field’s expansion is more than just an economic venture; it’s a testament to the potential of Israeli natural gas to play a crucial role in the energy dynamics of the Eastern Mediterranean. By increasing production and export capabilities, Israel not only secures its energy future but also positions itself as a key player in the regional energy market.

This development marks a significant milestone in Israel’s journey towards becoming an energy exporter, promising economic benefits and strengthening ties with neighboring countries through energy collaboration. As Chevron and its partners push forward with the Tamar expansion, the project stands as a beacon of progress, highlighting the synergy between technological advancement and strategic partnership in unlocking energy resources for a sustainable future.

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