Israel is interested in developing a “substantial” domestic gas storage facility to ensure a “continuous and secure” supply of energy, with the country’s energy ministry on May 5 launching a new market survey into various storage solutions.

Israel has become a significant gas producer thanks to the development of three major offshore fields — Leviathan, Tamar, and Karish — with output expected to rise further from field expansion projects and discoveries in the prolific East Mediterranean.

In a statement on May 5, the ministry said it wanted to promote a review of Israel’s options for developing gas storage, with the market survey seen as a key step toward the development of a facility.

“Israel is examining various alternatives for the development of a substantial gas storage facility with the aim to improve national energy resilience and ensure the continuity of gas supply,” it said in a background document.

It said the storage volume considered by the state is “over 2 Bcm” of gas with a withdrawal rate of more than 1 million cubic meters per hour.

“The move constitutes another step in strengthening the resilience of the Israeli energy sector, and is intended to examine the establishment of a storage facility that will ensure the continuity of the supply of gas to the electricity and industrial sectors, and respond to demand even in emergency situations, disruptions in supply, or shortages during peak consumption hours,” it said.

The ministry said the survey was addressed to all Israeli and international stakeholders, with comments invited by July 15.

It said the process was at an initial stage, and that it wanted to look into innovative and proven technologies, engineering solutions, business models, and financing structures, along with cost estimates and schedules.

“Among the alternatives that the document seeks to review are storage in underground reservoirs at sea and on land (new and depleted), salt caverns, onshore and offshore LNG facilities, and especially the examination of additional solutions,” it said.

“As part of the survey, any additional information and ideas regarding strengthening the energy security of the State of Israel can be submitted.”

Israel has previously considered developing gas storage at the depleted onshore Zohar gas field and at salt caverns, including at Mount Sedom.

Production shut-ins
The newly launched survey comes after Israel shut in both the Leviathan and Karish facilities for more than a month during the US/Israeli attacks on Iran that started on Feb. 28.

The facilities were also idled in June 2025 for almost two weeks after Israeli attacks against Iran.

Israeli gas production hit a new record high of 27.4 Bcm in 2024, according to the most recent ministry data.

Israel is also looking to set up a gas trading exchange to allow companies to trade “surplus” gas, the country’s energy ministry said Feb. 25.

Its energy minister Eli Cohen also announced the same day the launch of another competitive process for gas exploration in Israel’s economic waters, the fifth such round.

The ministry said gas was of strategic political importance, estimating that hundreds of billions of cubic meters more could be found that had not yet been discovered.

Israel’s growing gas production and exports are key to developing the regional market.

Egypt, in particular, is increasingly dependent on pipeline imports from Israel due to declining domestic output and has also turned to LNG imports to help meet demand.
It comes with delivered spot LNG prices to the East Mediterranean trading above $15/MMBtu.
Platts, part of S&P Global Energy, assessed the DES LNG East Mediterranean marker on May 1 at $15.52/MMBtu.

Of the three producing fields offshore Israel, the Energean-operated Karish is the country’s newest offshore field, having started up in October 2022.

Leviathan began production in 2019, and Tamar in 2013. US group Chevron is the operator of both Leviathan and Tamar.

Source: Platts