Israel lacks plan for gas, mortgages, public spending, government probe finds

Israel faces significant unpreparedness for key economic risks, including ensuring future electricity generation from natural gas, managing household mortgage burdens, and overseeing public spending, according to a new probe by State Comptroller Matanyahu Englman. The findings reveal a pattern of government ministries and regulators making decisions or announcing reforms without completing the necessary practical work.

The most critical issue identified concerns natural gas, which currently fuels about 70% of Israel's electricity. While Israel produces gas from offshore fields and exports a portion to Egypt and Jordan, the government has not yet finalized a policy to determine how much gas to reserve for domestic use in the coming decades. A committee recommended reserving 440 billion cubic meters for domestic needs, but the comptroller found this amount to be 75 billion cubic meters below the forecasted requirement through 2048. This gap could widen further due to increased electricity use by data centers and more extreme weather events.

Adding to the concern, Israel lacks any facility to store natural gas for emergencies. This means that if supply from an offshore field is interrupted, the country has no domestic reserve to draw upon. Furthermore, the Energy Ministry has not developed a long-term plan to address the eventual decline or depletion of gas reserves, which should consider options like importing gas, increasing reliance on renewable energy, or utilizing other fuel sources.

"There is a need already now to prepare and examine the steps required to ready the energy economy for the day when Israel no longer has natural-gas resources," Englman stated. He urged the Energy Ministry and relevant committees to finalize their work on gas allocation, storage, imports, and future energy strategies. Another audit also examined mortgages, identifying them as the largest financial commitment for many Israeli households, with total mortgage debt in Israel reaching significant levels.

“

There is a need already now to prepare and examine the steps required to ready the energy economy for the day when Israel no longer has natural-gas resources.