Israel Power Report Q2 2016
BMI View: During the period 2016 until 2025, Israel's total power output will increase from 69.62TWh to 78.82TWh, equivalent to a y-o-y average growth rate of just over 1.0%. Increasingly, natural gas will play a more dominant role in the country's power makeup, as the government seeks to capitalise on the enormous Tamar and Leviathan gas finds made off its coasts during 2009 and 2010 respectively, even if there have been delays in bringing these new sources of output online efficiently.
Latest Updates And Structural Trends:
After seven years of negotiations, the Palestinaian Authority and Israel's government were close to agreeing a deal which would allow the Gaza Strip to import gas from Israel's Leviathan gas field, according to a report published by Albawaba. According to the report, which relied on multiple - but undisclosed - sources, Israel's Security Cabinet had agreed in principle to the measure.
Bidding got underway for the Negev photovoltaic power plant in March 2016. The winning bidder will design, construct and operate the plant, which will link up with three other solar facilities in the area, and have a generating capacity of 30-40MW, for 25 years.
Egypt will have to pay the IEC USD1.76bn for a failure on their part to provide the IEC with natural gas, according to multiple press reports in December 2015. The judgment was made by the International Chamber of Commerce, in a closed-door session presided over by three mediators. Damage to pipelines in the Sinai caused by saboteurs and five years of political upheaval since the fall of Hosni Mubarak meant that the Egyptian General Petroleum Corporation and EGAS failed to supply gas, in line with contractual obligations.
Jordan will receive natural gas from a pipeline originating in the Tamar reservoir by 2017, the CEO of Israel Natural Gas Lines announced in March 2016. Samuel Tordjman underlined that despite various challenges faced in 2016, he expected this first pipeline - which will transport gas to private customers in Jordan - to be finished next year. A second pipeline will subsequently provide gas to the Jordanian National Electric Power Company.
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