Israel received royalties of NIS 829 million in the first half of 2022 from natural gas, quarries and resources, up 50% from the first half of 2021, the Ministry of National Infrastructures, Energy and Water Resources reports. Most of this figure – NIS 824 million – was from natural gas, up 48% from NIS 557 million the first half of last year. Since the state began collecting royalties for offshore natural gas in 2013, it has received NIS 10 billion.
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In full year 2021, Israel received NIS 1.27 billion in royalties from natural gas, oil, quarries and resources, up 15.3% from 2020. The Ministry of National Infrastructures, Energy and Water Resources estimates that full year 2022 royalties will be NIS 1.55 billion, having revised the figure upwards from NIS 1.36 billion following the higher than expected first half amount.
These record royalties followed record production of 10.85 BCM from the Leviathan and Tamar gas fields in the first half of 2022, of which 6.26 BCM was for the domestic market and 4.59 BCM was exported. Exports rose 21.9% in the first half of 2022 from the corresponding period of 2021 and the strengthening of the dollar against the shekel in the first half of the year further contributed to this increase.
Minister of National Infrastructures, Energy and Water Resources Karine Elharrar said, “The significance of increased state revenues from natural gas royalties by about 50% in the first half of 2022 is an increase of money invested in the stare coffers. This year the record was broken for natural gas production from the Leviathan and Tamar fields and it will be broken once again with the start of natural gas production from the Karish rig, which is expected soon.
The natural gas that is produced is designed first and foremost for the domestic market, but also for export, and even some for sale in the future to the EU, which is coping with an unprecedented energy crisis, as part of the trilateral agreement signed in June between Israel, Egypt and the EU for the export of Israeli natural gas to the EU.”
Published by Globes, Israel business news – en.globes.co.il – on August 24, 2022.
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