Israeli Natural Gas Framework Appears Closer Following Resignation

The approval of the regulatory framework for Israel's natural gas industry advanced on Sunday when in a political deal, Aryeh Deri, the country's Economy Minister, resigned his post. He will be replaced, at least temporarily, by the Prime Minister, Benjamin Netanyahu.

In recent months, Mr. Deri had refused to put his signature on article 52 of Israel's anti-trust laws. That article enables the bypassing of the anti-trust regulator on the grounds of national security issues.

Now, Prime Minister Netanyahu will inherit the Economy Ministry portfolio, which will give him the power to sign article 52. However before he will be able to do so, he will have to consult with the Economy Committee in the parliament. The consultation is more symbolic than substantial, since the committee has no power to block the Economy Minister from bypassing the anti-trust authority.

Commentators are expecting the process to last a few weeks, perhaps to year's end, as it may involve a petition to the Israeli High Court in order to block the regulatory framework.

Last week Prime Minister Netanyahu met Claudio Descalzi, the CEO of Eni S.p.A. In the meeting, the two discussed cooperation between Israel and Eni in the production and marketing of natural gas, as well as synergies in the joint development of natural gas in the eastern Mediterranean through future allocation of resources, export, and transport infrastructure.

"Prime Minister Netanyahu and Mr. Descalzi agreed that in light of the growing demand for natural gas in the region, and in order to continue to promote the common interests of the countries and major energy companies in the region, further possibilities for cooperation need to be explored, including joint development or transfer of natural gas to different consumers," a press release from Israel's Ministry of Foreign Affairs, release following the meeting, said.