Gas production from Israel’s offshore Tamar field was enough to balance out the loss caused to the country’s gross domestic product by the summer conflict in the Gaza Strip.
Based on figures from the Bank of Israel 2014 annual report, the Tamar field contributed 0.3% to the GDP last year, while the summer war between Israel and Hamas, whose cost on the Israeli side included blows to the tourism sector and disruption to business activity in the country’s south over the summer, drained a similar 0.3% from Israel’s GDP.
According to the Bank of Israel, during 2013, gas supplies from the Tamar field added 0.8% to the GDP.
The central bank said that “The improvement in the current account over the past two years is the direct result of the start of gas production from the Tamar field, which reduces the need to import fuel, as well as an improvement in the services account.”
According to the report, Israel’s account surplus was about USD 9 billion in 2014, equal to 3% of GDP, up from USD 6.9 billion in 2013 and just USD 2.1 billion in 2012.
The bank said that the oil and gas exploration also reduced the demand for domestic credit.
Earlier this month, Mr Benjamin Netanyahu, PM of Israel, together with
Under the terms of the USD 500 million deal, the Tamar natural gas reservoir partnership will sell 1.87 billion cubic meters of natural gas to Jordanian companies Arab Potash and its affiliate Jordan Bromine over the next 15 years.
The deal has faced obstacles in both countries, stalling the agreement several times last year.
In December, Israel’s anti-trust authority sought to void the partnership that allows its chief companies, the US-based Noble Energy and Israel’s Delek Group, to develop the Leviathan and Tamar gas sites in the Mediterranean over concerns the companies would monopolize the market.
In February, the Tamar partnership signed a USD 1.2 billion deal with Egyptian company Dolphinus Holdings to export 5 billion cubic meters of natural gas over the next 5 years.
In 2013, Israel decided to export 40% of the country’s offshore gas finds in an effort to transform Israel from an energy importer to a major player in the global gas market.
Source : TIMES OF ISRAEL
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