Israel will not require Chevron to sell stake in gas reservoirs
The inter-ministerial committee led by Yossi Dayan has decided against changing Chevron's status in Israel's gas market. The move aims to maintain regulatory certainty and avoid forcing the energy giant to divest from its key assets.
The inter-ministerial committee for examining natural gas market policy, headed by Ministry of Energy Director General Yossi Dayan, has decided to refrain from recommending changes to Chevron's status in the gas sector. As Calcalist has learned, the committee, which has been deliberating for approximately two and a half years, aims to maintain regulatory certainty for investors.
This means that the demand raised by the Ministry of Finance and the Competition Authority—to force Chevron to sell its stake in the Tamar or Leviathan reservoirs to improve competition—has been removed from the agenda and will not be reflected in the final report.
"Regulatory changes will put us in a terrible situation"
Chevron is the central player in Israel's gas market, responsible for about 90% of its gas reserves. It holds a 25% stake in the Tamar reservoir (acting as operator) and a 40% stake in the Leviathan reservoir. The Tamar reservoir contains about 300 billion cubic meters (BCM) of natural gas, while Leviathan holds about 600 BCM.
The Dayan Committee seeks to avoid market shocks, even in the name of competition, as the sector remains highly concentrated. A senior energy sector official stated: "These companies invested billions of dollars in Israel based on specific regulations. To change the rules of the game now is unthinkable. We are not a third-world country."
This consideration is particularly relevant against the backdrop of the fifth tender process for natural gas exploration in Israel's economic waters, announced last month. The Ministry of Energy fears that significant regulatory shifts would fatally sabotage the willingness of global giants to participate in new tenders.
Geopolitical context and pressure
The situation is complicated by regional conflict and the low probability of finding new reservoirs on the scale of Leviathan. Professional estimates suggest Israel's remaining potential lies in smaller, widely distributed reservoirs, each containing only a few dozen BCM.
Attention is also focused on the mega-deal to sell 130 BCM of natural gas to Egypt's Blue Ocean Energy from the Leviathan reservoir, valued at 112 billion shekels. Sources indicate the deal was pushed through under heavy pressure from the US administration, as Chevron opposes any measures that undermine its interests. "What annoys Chevron also annoys President Trump, and apparently, no one wants to annoy Trump," a source noted.
The data center challenge
The committee will also address the "frenzy" of entrepreneurs seeking to connect data centers to the power grid. Total demand for these connections has reached 27 gigawatts, three times the average electricity consumption of the Israeli economy. The committee is considering treating data center activity as natural gas exports to ensure the state does not invest limited energy resources solely for the enrichment of private entrepreneurs.
The final report is currently being drafted, though its status remains unclear ahead of the October 27 elections. State Comptroller Matanyahu Englman previously warned that Israel's energy independence could be severely compromised by current export policies and a lack of investment in gas storage infrastructure.
