Delek Group: Israel's Karish field contains significant gas condensates

7/14/2013

Delek Group: Israel's Karish field contains significant gas condensates

BY SARA TOTH

JERUSALEM -- An Israeli energy company said that a small offshore natural gas field contains a significant amount of gas condensate, the liquid hydrocarbons produced as a byproduct of natural gas.

The Karish field contains about 13 MMbbl of condensate, equal to the amount contained in the larger, nearby Tamar field, said Delek Group whose subsidiaries, along with U.S.-based Noble Energy, control both those fields.

The Karish field, discovered last year, contains an estimated 1.3 Tcf of natural gas, and the Tamar field, which began production in March, contains about 13 Tcf of gas.

Several large discoveries of natural gas in Israel in recent years offer the country more energy security, while significantly boosting the economy, economists have said. The government has approved exporting some of Israel's natural gas, but markets for those exports remain unclear amid geopolitical tensions.

Gross domestic product in Israel this year is expected to grow 3.8%, with natural gas production contributing about 1% point of that expansion, according to the Bank of Israel.

The bank has recently taken several steps, including intervention in the foreign currency market and an unscheduled interest rate cut, to offset the strengthening of the shekel as a result of gas production and its positive effect on the economy.

A stronger shekel could harm Israel's export-dependent economy by making its products less competitive abroad, economists have warned.

Dow Jones Newswires

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