Israeli High Court of Justice Rejects a Petition Against Gas Exports
Israel's Supreme court rejects a petition filed against Prime Minister Benjamin Netanyahu’s cabinet decision on gas exports. The High Court of Justice confirmed the 23 June decision to export 40% of the country’s natural gas and preserve 60% for national consumption. The deliberation took place Sunday 20 October but details are yet to be published. The vote was of 5-2 in favor of a 40% export quota and included the favorable vote of the court’s President. The court began looking at the case in August. The decision to keep 60% of Israel’s natural gas for domestic use was filed against in front of the Supreme court in June by MKs Shelly Yachimovich and Avishai Braverman (Labor Party), Moshe Gafni (United Torah Judaism) and former Knesset speaker Reuven Rivlin of Prime Minister Benjamin Netanyahu’s own Likud party.
They argued that such a decision should involve Israel’s Parliament given the importance of the interests at stake. Members of the Knesset happily welcomed the High Court’s ruling stressing on the importance of finding an equilibrium between boosting the country’s economy and ensuring Israel’s energy independence for decades to come. Finance Minister Yair Lapid and Energy and Water Minister Silvan Shalom praised the outcome reiterating the fact that Israel will be self-sufficient in terms of its natural gas needs despite the quotas allocated for exports necessary for future gas explorations and for the health of Israel’s economy. The decision would allow Israel to receive around 540 billion cubic meters of natural gas which would supply the country for 25 years based on its 2012 consumption of 7 bcm.
The June decision followed a recommendation by the Tzemach committee to export around 53% of Israel’s natural gas and preserve the rest for domestic use. The cabinet’s decision took into consideration the public and environmentalists’ concern of energy security and reduced the export quota to 40%. The cabinet’s decision introduced another major amendment by stipulating that sales to Israel’s immediate neighbours would be booked as exports rather than reducing the quota dedicated for internal use. Prime Minister Benjamin Netanyahu’s cabinet also gave its green light to immediate exports to Jordan.
Israel’s months of hesitation on gas exports and quotas comes after years of energy vulnerability. The country’s history of reliance on natural gas from Egypt is a great example of why the country’s energy security was put at the core of the debate. Attacks to the pipeline that carried natural gas from Egypt to Israel following the 2011 Arab Spring caused several disruptions in the flow of gas and led Israel to import dirty and expensive fuel products to make up for the shortfall. The abundance of natural gas found off Israel’s shores - with the 9 tcF Tamar and 19 tcF Leviathan discoveries - will ensure Israel is self-sufficient and in a position to monetize its riches and transform its economy.
Karen Ayat is an analyst focused on energy geopolitics in the Eastern Mediterranean. Follow Karen on Twitter: @karenayat