Potential Natural Gas Investment in Israel-Gaza Region May Be Deterred by Conflict

During the recent fighting in 2021, the Israeli government instructed Chevron to temporarily shut down the Tamar facility.

Chevron, in a statement, reiterated its focus on ensuring the safe and reliable supply of natural gas for the Israeli domestic and regional markets. The company deferred questions about the ongoing operations to the Israeli government.

Chevron has been actively working on plans to expand production at the Leviathan and Tamar units, as well as adding pipelines to boost gas flows from Israel to Egypt, where Israeli output is exported as liquefied natural gas from facilities on the Mediterranean coast.

The company is also considering the installation of a floating facility in Israeli waters to process liquefied natural gas, which would require a substantial investment. Chevron is involved in energy projects in Egypt as well, which is a major gas producer and consumer, and Cyprus.

The escalation of the conflict could potentially slow down the pace of investment in gas fields in the region and hinder Israel’s efforts to attract more international energy companies for exploration and production activities. Chevron’s presence in Israel was expected to pave the way for other major international energy companies to invest in the country.

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