Expanding Gas Horizon
Israel Launches Fifth Offshore Gas Tender to Boost Reserves and Expand Regional Exports
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Key Points
1
Israel’s petroleum commissioner Chen Bar Yoseph says there could be as much as 400 bcm of gas yet to be discovered, signaling significant potential beyond current fields.
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Israel has a $35 billion deal to export 130 bcm of natural gas to Egypt through 2040, marking a record-level export arrangement.
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Europe remains a potential future market for Israeli gas, but there is currently no pipeline and Israel does not yet have enough reserves to fuel exports to Europe, though this could change with new discoveries.
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Israel is moving ahead with a major underwater power cable project to transmit up to 5.4 GW of electricity across roughly 150 km (about 102 km underwater), intended to shift power from the south to the center.
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Delays to the tender were influenced by regional conflicts, and a separate Lebanon-Israel deal could attract even more foreign companies to participate in Israel’s expanding gas sector.
Israel has launched its fifth offshore natural gas tender, opening five exploration blocks in the Mediterranean Sea to boost domestic reserves and grow exports, according to Reuters. Energy Minister Eli Cohen kicked off the competitive process, which will run in three phases and take about a year to complete.
The blocks sit in the Levant Basin, close to the existing Tamar and Leviathan fields. Petroleum Commissioner Chen Bar Yoseph says there could be as much as 400 billion cubic meters (bcm) of gas still waiting to be found, Times of Israel reported.
How the Tender Works and Who Can Bid
The tender runs in three phases over roughly one year, according to Reuters. Companies must first submit expressions of interest, then technical and financial bids, before a winner is chosen. US energy giant Chevron will be allowed to participate — but only as part of a consortium, not as a sole bidder.
By law, the first 50 bcm of any new gas discovery must be reserved for Israeli homes and businesses. Gas beyond that threshold can be split between local use and exports. Middle East Online noted that the process follows years of delays tied to regional conflicts.
Record Egypt Deal and the Push to Export More
Israel already has a landmark $35 billion deal to send 130 bcm of natural gas to Egypt through 2040 — the largest export arrangement in the country's history, according to Jerusalem Post. Egypt and Jordan are currently Israel's main gas export partners.
Europe is seen as a future market, but major hurdles remain. Israel does not yet have a pipeline to Europe, and current reserves are not large enough to fuel such exports. New discoveries from this tender could change that picture, officials say.
Regional Tensions Delayed the Tender — and Could Help It Too
The launch comes after significant delays caused by conflict in the region, Middle East Online reported. The war in Gaza and broader instability made foreign energy companies cautious about committing to Israeli waters. Officials moved forward anyway, citing seismic survey activity already underway near the new blocks.
A separate Lebanon-Israel deal, if finalized, could attract even more foreign companies to the sector, according to Dev Discourse. That agreement would open up additional offshore areas and signal a more stable investment environment for global energy firms.
Israel's Bigger Energy Ambitions Beyond Gas
The gas tender is just one piece of a larger energy push. Israel is also building a major underwater power cable to move electricity from the country's south to its center. The cable will stretch about 150 km — roughly 102 km of that underwater — and carry up to 5.4 gigawatts of power.
Plans are also moving ahead to expand both the Tamar and Leviathan gas fields, according to Jerusalem Post. Together, these projects signal that Israel is betting heavily on becoming a regional — and potentially global — energy supplier in the years ahead.
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