US States Support for Israeli Gas Development

The United States has expressed it support for Noble Energy and the development of natural gas resources in the Eastern Mediterranean.

Israel’s Antitrust Authority recently reversed its position on an agreement that would allow Noble Energy and Delek Group to maintain their interests in offshore Leviathan and Tamar gas fields.  The development could potentially have significant consequences on the development of regional offshore resources as well as announced deals for gas supply with Israel’s neighbouring states.

State Department spokesman Jeff Rathke said that U.S. Secretary of State John Kerry had discussed the issue with Israeli Prime Minister Benjamin Netanyahu.

"We continue to engage and we support all parties to move forward with the natural gas deal signed between Noble Energy and entities in Jordan and Egypt," Rathke said on Tuesday. "We strongly believe that these deals would enhance energy security in the region."

Rathke said the “legal debate” did not involve the United States but said, "It is important for all countries to have a strong investment climate, including a consistent and predictable regulatory framework."

The Israeli government’s latest forecast for domestic natural gas consumption may have played a role in the controversial decision.

TheMarker reports that the leaked revised estimate, indicates lower-than-expected consumption of natural gas by major industrial users including the state-owned power monopoly Israel Electric Corporation, suggesting that Israel does not require natural gas supply from the giant Leviathan field until approximately 2020.