BP Begins LNG Supply to Israel

BP has started delivering liquefied natural gas to Israel via an offshore buoy Thursday to help meet Israel’s energy needs until it begins production of local gas from an offshore field later this year, Dow Jones has reported citing government officials.

The gas will be consumed by state-owned Israel Electric Co. until at least April, when Israel’s offshore Tamar reserve will begin supplying gas, the report said.

Israel has been facing gas shortage following the cancellation by East Mediterranean Gas Co. of its supply deal with Israel last year in the wake of political changes in Egypt and numerous attacks sabotaging its pipeline in the Sinai Peninsula.

Since 2008, Egypt had supplied Israel with about 40% of its energy needs, or about 1.7 million cubic meters of gas a year

In the case that something goes wrong with Tamar, the buoy will allow foreign companies to supply gas to Israel, Dow Jones added. Currently, Israel only has one gas pipeline, the closed one from Egypt, which is unlikely to reopen in the near future.