Israel to push ahead with gas field development

Israeli Prime Minister Benjamin Netanyahu declared Tuesday that he will push ahead with the development of the country's gas fields, a day after the head of the Antitrust Authority resigned over the government's refusal to end monopoly on gas drilling.

The government is under pressure to decide whether to expedite the development of the Leviathan gas field or to increase competition.

Both Leviathan and Tamar, which started working in 2013, are controlled by Texas-based Noble Energy and Israeli conglomerate Delek Group. Both reservoirs are located off the Mediterranean cost of Israel.

"I will not allow any consideration or pressure, or populist moves to prevent the flow of gas to the State of Israel," Netanyahu said at the start of his cabinet meeting.

He noted that there is an outline for the gas market, which the head of the Antitrust Authority, David Gilo, did not agree with. "But we are going forward," said Netanyahu.

Gilo, whose office is independent, announced Monday that he is stepping down in protest of government's interference with his efforts to break up the stronghold of Noble and Delek over gas extractions in Israel.

His resignation, which will become effective in August, has immediately raised Delek's shares at the Tel Aviv Stock Exchange by more than three percent.

Leviathan was discovered in 2010 and holds an estimated 22 trillion cubic feet of natural gas, making it the largest off-shore gas discovery in the last decade. Production was expected to begin in 2018 but its development has been stalled by the controversy of its ownership.

Noble and Delek have already signed deals to sell gas to Egypt, Jordan and the Palestinian National Authority.

Tamar was discovered offshore Israel in 2009. Gas production at the 10 trillion cubic feet natural gas field began in March 2013. Endit