Official report: Israel may lose its energy independence within 22 years economy

Israel’s State Comptroller, Netanyahu Engelman, warned that the country may lose its energy independence within two decades, with the possibility of being forced to import natural gas within approximately 22 years, if current reserves continue to be consumed at expected rates.

According to the report of this monitoring institution, which was issued today, Wednesday, and reported by the Israeli Broadcasting Corporation, the discovered gas reserves may not be sufficient to meet domestic demand in the future, at a time when Israel continues to export a large portion of its production abroad.

The State Comptroller’s report indicated that about 49% of natural gas production in Israel in 2024 was exported to Egypt and Jordan, criticizing the failure to increase the quantities allocated to the local market despite the growth of reserves discovered during the past years.

The report explained that natural gas provides about 70% of electricity production in Israel, but the Israeli Ministry of Energy has not yet developed a long-term policy to guarantee the needs of the local market, and there is no comprehensive plan for the energy sector or sufficient facilities to store gas.

Energy risks

The oversight report called on the Tel Aviv government to expedite the completion of the energy security strategy, ensure that domestic demand is met in the future, and prepare for the phase of decline in current reserves.

He also warned that Israel is not prepared for the expected closure of refineries in Haifa Bay by 2030, which could lead to increased dependence on cooking gas imports.

According to the report, about 63% of cooking gas is currently produced locally, but this percentage will decline significantly after the closure of refineries, bringing the share of imports to about 82% of demand.

The report indicated a delay in establishing the necessary infrastructure to import and store energy, as Israel currently has only one sea point for importing cooking gas, while available stocks do not exceed three days of consumption during the winter.

Huge losses

The State Comptroller’s report also revealed significant delays in the operation of Units 70 and 80 of the Orot Rabin electrical station in the Hadera region in western Israel, as their operation was delayed by about three years compared to the original schedules.

The report estimated the economic damage resulting from this delay at no less than 4.6 billion shekels ($1.35 billion), including increased electricity production costs, environmental damage, and increased project costs.

The total cost of the project also rose to about 4 billion shekels (about 1.17 billion dollars), with financing costs increasing by 278 million shekels (about 81.5 million dollars) above planned levels.

The report sparked criticism from environmental organizations who considered that continuing to export gas before determining the needs of the local market threatens energy security in the future, especially in light of expectations of increased demand for energy as a result of the expansion of data centers and the repercussions of climate change.