Israeli firms announce signs of large gas field in Mediterranean

Two Israeli gas exploration firms announced Sunday to have found signs of large natural gas field offshore Israel.

The announcement was the latest in a string of gas discoveries off the coasts of Israel, Egypt, and Cyprus, including some of the world's largest gas deposits.

A statement by Isramco Negev 2 and Modiin Energy said that an estimated amount of 8.9 trillion cubic feet of gas were found at the Daniel East and West fields.

"Gas reserves of this size could significantly change the Israeli gas market," said Tzahi Sultan, one of the owners of Modiin.

According to Israel's Energy Minister Yuval Steinitz, experts estimate at least 10,000 billion cubic meters (bcm) of gas in the east Mediterranean basin. This amount would be enough to supply Israel's domestic needs and exports to Europe.

Isramco already holds stakes in the Tamar gas field of similar size.

Tamar, with an estimated 280 bcm of gas, and Leviathan, with estimated reserves of 622 bcm, were found off Israel's Mediterranean coast in 2009 and 2010. The discoveries were hailed as a bonanza to the economy of the resource-poor country.

Gas production in Tamar kicked off in March 2013, but the development of Leviathan and the smaller Karish and Tanin have been stalled by years of political quarrels and a public protest.

On Dec. 17, Prime Minister Benjamin Netanyahu signed a framework agreement to allow a consortium led by Texas-based Noble Energy and Israel-based Delek Group to develop Israel's largest gas field Leviathan, while forcing them to sell two smaller, undeveloped fields.

The approval came after years of political infighting and wide public protest, with weekly rallies of tens of thousands of Israelis in big cities throughout the country. Endit