Israel's Refined Oil Product Demand Rose by 19% in 2012 Due to Sharply Higher Consumption

Israel's refined oil product demand rose by 19% in 2012 due to sharply higher consumption of gasoil and fuel oil in the country's electricity sector, the country's Energy and Water Ministry said Wednesday. 

The ministry's Fuel and Gas Administration said total demand for refined products was 13.095 million mt last year, compared with 11.019 million mt in 2011. 

Demand for gasoil in the electricity sector was 1.951 million mt in 2012, compared with 636,000 mt in 2011. Fuel oil demand for electricity production totaled 996,000 mt last year, compared with 245,000 mt a year ago. 

Gasoline consumption rose 2% year on year to 2.703 million mt, according to the data. 

Israel's demand for most other refined products was largely unchanged or lower. Kerosene demand in 2012 was 1.104 million mt, compared with 1.163 million mt a year earlier, while naphtha demand was 549,000 mt last year, compared with 656,000 mt in 2011. 

The sharp rise in gasoil and fuel oil consumption was a result of a severe shortage of natural gas following the cutoff of supplies from Egypt throughout most of last year and the faster-than-expected depletion of the Mary B reservoir off Israel's southern Mediterranean coast. 

Israel Electric Corp. has said it expects its demand for gasoil and fuel oil to decline sharply in 2013 due to the expected startup of commercial production at the huge Tamar offshore gas field in April and LNG imports which began last week. The state-owned utility said that it expects gas to account for 30% of its fuel mix this year, compared with only 14% in 2012.