World Reporter

The Impact of Israel’s Gas Field Shutdown on Regional Energy Dynamics

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In a recent development, Israel has taken the significant step of shutting down its Tamar natural gas field, located 15 miles off its southern coast. This move was made at the request of local officials, following a deadly assault by Hamas militants. This article delves into the implications of this shutdown, why it matters, and its potential consequences for not only Israel but also its neighbors and the broader global gas market.

The Tamar Gas Field: A Vital Energy Source

The Tamar gas field holds immense importance for Israel as it caters to approximately 70% of the nation’s energy requirements for power generation. As a result, any extended shutdown could have a ripple effect on Israeli gas exports to neighboring countries, including Egypt and Jordan. Furthermore, it places added pressure on an already tightly balanced global gas market.

Continued Gas Supply from Chevron

Chevron, the US energy company responsible for the Tamar field, has been quick to address the situation. Currently, they continue to supply gas to their Israeli and regional customers from the larger Leviathan platform. The emphasis here is on maintaining a safe and reliable gas supply to the domestic market and regional customers.

The Role of Geopolitical Conflict

The shutdown of the Tamar gas field comes in the midst of ongoing hostilities between Hamas and Israel. The Tamar platform is susceptible to rocket fire from Gaza, which further exacerbates the situation and poses operational risks.

Market Impact

As the shutdown unfolds, it coincides with the approach of winter in the northern hemisphere when the demand for natural gas surges for heating purposes. Notably, European gas prices have already seen a 29% increase since the attack by Hamas. This is attributed, in part, to the unfolding conflict in Israel. Goldman Sachs analysts believe that the Tamar shutdown has contributed to this surge in European gas prices. The possibility of a sustained global LNG supply squeeze could have broader implications for Europe’s gas market.

Key Factors Driving European Gas Prices

While the Tamar shutdown is a factor, it’s essential to acknowledge other contributing elements affecting European gas prices. A temporary shutdown of a gas pipeline in the Baltic Sea and planned industrial action by liquefied natural gas (LNG) workers in Australia also have roles to play in this complex scenario. These factors can collectively impact Europe’s gas market and its ability to manage unforeseen events.

Regional Implications

The consequences of the Tamar shutdown extend primarily to Israel’s immediate neighbors, Jordan and Egypt, both of which depend on this gas field for a portion of their gas supply. Any prolonged shutdown may require Israel to redirect gas produced at the Leviathan platform to its domestic market, affecting the energy dynamics in the region.

Implications for Jordan and Egypt

For Jordan, while the Leviathan platform is a significant source of gas, a lengthy Tamar outage could lead to challenges in meeting its domestic demands. As for Egypt, reduced production at Tamar could limit its ability to increase LNG exports, affecting its income. This situation is further complicated by Egypt’s increasing domestic gas consumption.

Long-Term Considerations

Looking ahead, the consequences of the Tamar shutdown are more immediate for Israel’s neighbors. Still, the global gas market is expected to have limited impact as Israel is not a major gas supplier on the global stage.


In summary, the shutdown of Israel’s Tamar gas field is a significant development with far-reaching consequences. It not only affects Israel’s energy security but also has implications for its neighbors and the broader global gas market. This situation highlights the interconnectedness of regional energy dynamics and the importance of a stable energy supply in a world where conflicts can disrupt the status quo.