Israel Shuts Down Tamar Gas Field Amidst Hamas Conflict: Implications and Concerns
Chevron, the US energy company, announced the shutdown of the Tamar natural gas field off Israel's coast following a directive from local officials. This decision comes in the wake of the recent assault on Israel by Hamas militants. The Tamar field, situated just 15 miles from Israel's southern coast, is crucial, supplying 70% of the country's energy for power generation.
Why the Shutdown Matters:
Impact on Israel's Energy Supply: The Tamar field is a significant energy source for Israel. Its closure could affect Israeli gas exports to neighboring countries, Egypt and Jordan, potentially straining the already tight global gas market. However, Chevron continues to supply gas from the larger Leviathan platform for now.
Security Concerns: The Tamar platform's proximity to Gaza makes it vulnerable to rocket attacks, a potential reason behind the shutdown.
Global Gas Market Implications: The closure coincides with the northern hemisphere's approach to winter, a period of increased natural gas demand. European gas prices have surged since the conflict's onset in Israel. While some analysts attribute this rise to the Israel situation, others point to other global events, such as a Baltic Sea pipeline shutdown and potential strikes by LNG workers in Australia.
Impact on Neighboring Countries: Jordan and Egypt, which import 7% and 4% of their total gas from Tamar, respectively, could face supply challenges. If Tamar's shutdown prolongs, Israel might need to divert gas meant for Jordan from the Leviathan field to meet its domestic needs. For Egypt, the shutdown could hinder its ability to increase LNG exports, affecting its foreign currency earnings.
Biden's Response: Amidst this crisis, President Joe Biden's decision to take a day off has raised eyebrows, with concerns about his commitment to addressing the situation.
The situation in the Middle East remains fluid, with the Tamar shutdown adding another layer of complexity. While Israel isn't a significant global gas supplier, the implications of this shutdown, especially for its neighbors, are noteworthy. As the conflict continues, the world watches closely, hoping for a swift resolution.
