Israel Plans to Increase Natural Gas Exploration in Its Mediterranean Blocks: The Eastern Mediterranean Region Remains Prospective

     Israel recently announced that it is launching a new competitive process to search for natural gas in its blocks in the Mediterranean Sea. Energy and Infrastructure Minister Eli Cohen announced that the country will open five new blocks for exploration, covering an area of approximately 7,100 sq.km. The ministry estimates that hundreds of BCM of natural gas could be discovered.

     As reported by the Jerusalem Post:

“Natural gas is a strategic asset that strengthens our economic and diplomatic standing in the world in general, and in the Middle East in particular,” Cohen said.

“Therefore, my policy is to expand natural gas exploration, bring international energy giants to invest in Israel, and increase natural gas production, for the local market and for export,” he added.

     The ministry confirmed that six exploration licenses were granted to a group that includes the State Oil Company of the Republic of Azerbaijan (SOCAR), London-headquartered BP, and Israel’s NewMed Energy. Seismic surveys are planned in the near future. They also plan to expand production capacity from the Tamar and Leviathan reservoirs. Israel also recently signed the largest natural gas export deal in its history. The gas will be exported to Egypt and will help strengthen bilateral ties between the two neighboring countries.

“The ministry is acting to ensure the supply of natural gas to the local market, while maintaining an attractive environment for investments and competitive prices,” Energy and Infrastructure Ministry Director-General Yossi Dayan said.

“The competitive procedure is intended to increase the supply of natural gas, increase competition, attract additional players, and assist in the continued development of the market. The correct way to ensure competition and reduce prices is through expanding supply, and not through burdensome regulation,” Dayan added.

“Alongside its contribution to the market, the procedure will strengthen Israel’s energy resilience and its regional and international standing for the coming years,” he concluded.

The Energy and Infrastructure Ministry’s Natural Resources Administration Director, Chen Bar Yosef, added: “The procedure will enable new and significant entrepreneurs to take part in the development of the Israeli natural gas sector and in the regional energy map. As we have already seen in the past, activity in Israel holds significant potential for success. We intend to act with every relevant international factor and encourage it to submit a bid as part of this important procedure.”

 

Eastern Mediterranean Exploration

     The map below shows the exclusive economic zones for each country bordering the Eastern Mediterranean. It also shows a once-proposed subsea pipeline from Israel’s fields to Turkey. I believe Israel, Egypt, and Cyprus are the only producers in the Eastern Mediterranean thus far, but it is believed that significant potential remains.

     The EIA and Eurasia Review notes:

“The development of midstream infrastructure for natural gas in the Eastern Mediterranean is still emerging. As of July 2025, Egypt is the only country in the region with liquefied natural gas (LNG) export capacity, which Israel uses to deliver natural gas outside the region. Cyprus aims to use Egypt’s LNG infrastructure once its offshore fields begin producing, which could lead to competition with Israel for Egypt’s LNG export capacity. Jordan and Lebanon are developing LNG infrastructure that would allow additional natural gas import flexibility.”

     Egypt’s offshore production, which is closer to land, is also maturing. However, there have been some new finds. Egypt’s Zohr field, operated by Eni, came online in 2017 and is the country’s largest natural gas discovery to date. Egypt consumes more oil & gas than the other countries owing to its higher population. Israel produced very little domestic natural gas before the Tamar field came online in 2013. Recent discoveries offshore Cyprus include three new fields. However, first production is not expected until 2028 for one field and 2031 and 2035 for the other two fields, respectively. Lebanon and Syria don’t have any Eastern Mediterranean production, but may explore it in the future. The table below shows Eastern Mediterranean projects, operators, and production timelines.

 

References:

 

Israel launches new search for natural gas in the Mediterranean Sea. James Genn, Jerusalem Post. July 6, 2026. Israel launches new search for natural gas in the Mediterranean Sea | The Jerusalem Post

Eastern Mediterranean Energy Profile – Analysis. Energy Information Administration. Eurasia Review. December 8, 2025. Eastern Mediterranean Energy Profile - Analysis - Eurasia Review