Israel-Palestine conflict: Tel Aviv halts key offshore gas field operations as war escalates

Israel has decided to cease production at the Tamar gas field located off its southern coastline and is actively seeking alternative energy sources to fulfil its energy requirements, the country's energy ministry announced on Monday.

Chevron, the operator of the Tamar field, confirmed that it had received instructions from the ministry to halt operations at the field, which serves as a major supplier of natural gas for Israel's power generation and industrial sectors. Additionally, some of the gas from Tamar is exported to neighbouring Jordan and Egypt.

This development comes in the aftermath of an incursion by Hamas militants from Gaza on Saturday, marking the deadliest breach of Israeli territory since the Yom Kippur War 50 years ago when Egypt and Syria launched attacks.

"In response to the current situation, Israel's defence establishment has ordered the temporary suspension of natural gas supplies from the Tamar field," stated the energy ministry in a released statement. "Alternative fuel sources will be utilised to meet the energy demands of the economy, with preparations underway in the power industry to shift to these alternatives."

In a separate announcement, the energy ministry revealed that Israel's Prime Minister, Benjamin Netanyahu's government, has granted Energy Minister Yisrael Katz the authority to declare a state of emergency for the country's energy sector during the next two weeks, should it become necessary. This move would enable the government to allocate natural gas to consumers in case supply shortages arise.

The Tamar gas field is situated approximately 25 kilometres (15.5 miles) off the city of Ashdod along the southern Mediterranean coast of Israel. The platform is visible from the northern Gaza Strip and is within the range of rocket fire from Gaza.

Chevron reported that Israel's largest offshore gas field, Leviathan, continues to operate without disruptions.

A decade ago, Israel emerged as a significant regional gas supplier when production commenced at the Tamar field, subsequently followed by several other gas development projects. In 2022, Tamar's production saw an 18% increase, reaching 10.25 billion cubic meters (bcm), according to government data.

Ownership of the Tamar field is divided, with Chevron holding a 25% stake, Isramco owning 28.75%, Mubadala Petroleum from the United Arab Emirates possessing 22%, Tamar Petroleum holding 16.75%, Dor Gas with 4%, and Everest with a 3.5% stake.