Israel's Record Natural Gas Exports to Egypt and the Growing Energy Landscape

In 2024, Israel achieved a significant milestone in its energy sector, exporting a record 981 million cubic feet per day (mmcfd) of natural gas to Egypt, marking an 18.2% year-over-year increase. This surge can be attributed to Egypt's growing natural gas deficit, driven by declining domestic production. However, despite the growth, Israel is expected to face challenges in further ramping up its exports due to infrastructure limitations.

The Levant Basin, located in the eastern Mediterranean Sea, continues to shine as one of the world’s most promising natural gas resources. Over the past two decades, approximately 85 trillion cubic feet (2.4 trillion cubic meters) of gas have been discovered in this region, shared by Israel, Egypt, Cyprus, and Lebanon. The area has become a focal point for global energy companies, particularly as Europe seeks alternatives to Russian gas supplies.

Israel’s natural gas sector has seen impressive growth in the last decade, with the country’s gas reserves increasing by 40%. Much of this growth can be attributed to aggressive exploration and development efforts, including the startup of Israel’s first major gas field, Tamar, in 2013. Since then, offshore production has grown five-fold, with the country's reserves increasing from 780 billion cubic meters (bcm) in 2012 to 1,087 bcm by 2022.

One of the crown jewels of Israel’s energy assets is the Leviathan field, which stands as the largest natural gas reservoir in the Mediterranean. With 22.9 trillion cubic feet of recoverable gas, Leviathan is one of the largest producing gas assets globally. Discovered in 2010, the field is operated by NewMed Energy with a 45.3% working interest, while Chevron holds 39.7% and Ratio Oil Corp. owns 15%.

As Israel strengthens its position in the energy market, other countries in the Mediterranean are also exploring their offshore resources. Chevron has shown interest in offshore exploration in Greece, specifically southwest of the Peloponnese peninsula and west of Crete. This interest is part of Greece’s national strategy to boost domestic energy supply and reduce reliance on imported energy, particularly in the wake of the 2022 energy crisis.

Greece's energy strategy also focuses on renewable energy and natural gas as a bridge fuel to meet future energy demands. The involvement of energy giants like Chevron and ExxonMobil in Greece signals the country’s potential role as a key player in the global energy market. ExxonMobil, in collaboration with Helleniq Energy, is already conducting exploration studies off the coast of Crete and plans to continue the exploration in the coming years.

Greece hopes to uncover significant natural gas resources similar to those discovered offshore Israel and Egypt. With major energy companies investing in exploration, the country is poised to become a crucial part of Europe’s energy future.

As the Eastern Mediterranean becomes increasingly vital to global energy security, Israel’s role as a key exporter of natural gas will continue to grow, while neighboring nations like Greece work to tap into their own offshore resources.