Israel Keen on Indian Investment in Natural Gas Sector

Israel is planning to bring in the India as a party in the development of its natural gas fields.

With Israeli minister of energy and water resources Uzi Landau in India currently, reports in the India media suggest that a deal may be signed soon in this regard.

“Israel plans to attract investments in the gas sector, especially exploration and production. Israel has gas reserves of 122 trillion cubic feet, of which 20 per cent have already been found. We are in the midst of formulation of an action plan through several study groups. India can join hands with Israel in this regard and later Indian companies can bid in natural gas exploration and production,” Landau told Business Standard.

Landau, who met industry representatives here, said that Israel government was keen to export natural gas. Israel would also seek Indian expertise in the construction of LNG facility, which involves an investment of $8 billion.

A report in Globes said that the proposal to the Indian government may be part of Israel's efforts to broaden the oil embargo against Iran, and prevent India from buying Iranian oil. It might also add another partner for the financing of the gas fields' development and enable gas deliveries from Tamar to begin on time.

Meanwhile, Iran is still India's second largest supplier of natural gas. But the sanctions against Iran are also affecting India, which has delayed signing new contracts for the development of Farzad-B gas field, which has an estimated 21.68 trillion feet of natural gas, and in which ONGC is involved.