Israeli Gasoil and Fuel Oil Consumption for Electricity Production Rose Sharply

Israeli gasoil and fuel oil consumption for electricity production rose sharply in the first 11 months of the year due to a severe shortage of natural gas, Israel's Energy and Water Ministry said Thursday. 

Gasoil consumption by Israel Electric Corp. and private power companies totaled 1.867 million mt from in the period compared with 467,000 mt in the corresponding period last year. Fuel oil demand was 949,000 mt compared with 176,000 mt a year earlier. 

IEC has been facing a shortage of natural gas since February 2011 when Egyptian gas supplies were first interrupted. However, the situation has deteriorated over the past year, forcing IEC to switch to gasoil and fuel oil to power most of its gas power plants. 

Natural gas deliveries form the sole local supplier, the Yam Thetis consortium, have dropped sharply since the beginning of the year due to the faster-than-expected depletion of the Mary B reservoir off Israel's southern Mediterranean coast. The situation is expected to improve as of April when commercial production at the huge Tamar offshore field is scheduled to begin. In addition, IEC is due to receive its first shipment of LNG in mid-January.