State Revenue Natural Gas: + NIS 85 Billion in the Coming Decade. No Transparency

The committee headed by MK Mickey Levy held a debate today on the subject of State Comptroller’s Report 64A, which deals with the collection of royalties and the use of natural resources.

The director of the division in the State Comptroller’s Office, Mr. Ehud Langerman, presented to the committee the main findings of the report, which pointed to fundamental deficiencies in the supervision of the exploitation of natural resources and in the collection of royalties.

Committee Chairman, MK Mickey Levy: “The State Comptroller’s report from 2013 revealed serious shortcomings in the supervision of Israel’s natural resources, and here it is a decade later – reality proves that the audit is more relevant than ever. While the value of future royalties from natural resources was estimated at approximately 12 billion shekels, serious questions are being raised about how they are being managed.“

As of 2022, Israel had approximately 1,087 billion cubic meters (bcm) of proven natural gas reserves, which is a significant increase from the 780 bcm reported in 2012, reflecting new discoveries and updated assessments of existing fields.

From 2010 to 2022, Israel’s natural gas production increased dramatically from around 3 bcm to 22 bcm, averaging an annual growth rate of +17%. In 2017, Israel consumed approximately 353,467 million cubic feet (MMcf) of natural gas annually, which translates to 42,272 cubic feet per capita each year.

Israel began exporting gas in 2017. By 2024, exports reached record levels, with an average of 27 million cubic meters per day. Additionally, in 2024, Israel exported a record 981 million cubic feet per day to Egypt, marking an 18.2% increase year-over-year.

In 2020, 2021, and 2022, Israel earned about 1.1 billion dollars from gas (3.37 billion shekels), averaging 366 million dollars annually. So, the big question is who gets the money? Energy prices are generally very high in Israel. So, obviously the average citizen does not profit.

The CEO of the Natural Gas Association, Mr. Amir Foster, noted that revenues The state’s revenues from natural gas exceeded NIS 30 billion, with NIS 25 billion received in 2023 alone. According to him, additional revenues of approximately NIS 85 billion are expected in the coming decade. Brilliant. Where is the money?

According to NGOs like Lobby99 and Sustainable Desert, the lack of transparency in the royalty collection process gives an unfair advantage to large corporations, “without a substantial change, the public will continue to lose billions to private companies.

Lobby99 posted on X: “The gap between the share that the state is supposed to receive from our natural resources and the share that is received in reality is large, too large. The lack of transparency in the collection serves the companies that benefit from natural resources that belong to the public.”

VonNaftali: We see again and again how deep elites control Israel. The citizen pays with high costs of living. Israel needs a better state, bureaucracy and transparency. Israel needs a Milei or Trump.

Based on the press release of the Knesset (29.01.2025). General data fetched by VonNaftali. Pic AI-generated. Illustrative