Chevron Shuts Down Natural Gas Field in Israel at Request of Authorities

Chevron has announced the closure of its Tamar natural gas field off the coast of Israel, following a request from local authorities. The closure comes just two days after Hamas fighters launched a deadly attack on the country. The Tamar field, which covers 70% of Israel’s energy needs for electricity generation, is located 24 meters off Israel’s southern coast. A prolonged shutdown could have negative consequences on Israeli gas exports to neighboring countries Egypt and Jordan, as well as complicate the global gas market. For now, Chevron will continue to supply gas to its customers in Israel and the region from the larger Leviathan platform. Chevron spokeswoman Sally Jones emphasized the company’s focus on the safe and reliable supply of natural gas and prioritizing the safety of staff, communities, and the environment. The closure of the Tamar field, combined with heightened tensions between Israel and Hamas, has led to a rise in gas prices in Europe. However, experts point out that other factors, such as the temporary closure of a gas pipeline in the Baltic Sea and planned industrial action by liquefied natural gas (LNG) workers in Australia, have also contributed to the price increase. Although the closure of the Tamar field may put upward pressure on European gas prices, the overall impact on the global gas market is expected to be limited as Israel is not a major supplier. The most immediate impact will be felt by neighboring countries Jordan and Egypt, which import significant amounts of gas supply from the Tamar platform. A prolonged disruption at Tamar could force Israel to divert gas produced at the Leviathan platform to its domestic market, potentially affecting Jordan’s gas supply. Additionally, Egypt’s ability to increase its LNG exports and earn foreign currency would be reduced if Tamar remains closed. The International Energy Agency has highlighted the need for Egypt to import gas from Israel to meet its domestic demand and maintain its LNG export ambitions.