Israel’s Energy and Infrastructure Ministry announced on Monday the launch of a new competitive tender to explore additional natural gas reserves within the country’s exclusive economic zone. The initiative will open five new offshore exploration blocks, spanning approximately 7,100 square kilometers, with the aim of uncovering potentially hundreds of billions of cubic meters of undiscovered natural gas.

Energy and Infrastructure Minister Eli Cohen described natural gas as a “strategic asset” that enhances Israel’s economic strength and diplomatic ties, particularly in the Middle East. The ministry estimates that expanded exploration and production could satisfy domestic energy demand, boost market competition, increase state revenue, and help reduce electricity costs for Israeli consumers.

To date, Israel has generated more than 30 billion shekels from natural gas revenues, with projections suggesting this figure could grow to hundreds of billions over the next three decades. Cohen emphasized his policy goals to attract international energy companies to invest in Israel and expand gas production for both domestic consumption and export markets.

Six exploration licenses have recently been awarded to a consortium including Azerbaijan’s State Oil Company (SOCAR), BP’s London-based operations, and Israel’s NewMed Energy. Seismic surveys under these licenses are scheduled to begin in the coming months, alongside plans to enhance production capacity at the Tamar and Leviathan gas fields.

The ministry also highlighted a landmark natural gas export agreement with Egypt valued at 112 billion shekels, of which 58 billion shekels will constitute state revenue. This deal is seen as a means to strengthen regional stability, improve bilateral relations with Egypt, promote additional foreign investment, and support the maintenance of competitive electricity prices in Israel.

Yossi Dayan, director-general of the Energy and Infrastructure Ministry, stated that the tender aims to increase the natural gas supply, foster competition, and attract new market participants. Dayan opposed heavy regulatory measures to lower prices, instead advocating for expanding supply as the most effective mechanism.

Chen Bar Yosef, director of the ministry’s Natural Resources Administration, noted that the tender provides an opportunity for significant new players to contribute to Israel’s energy sector and its position within the regional energy landscape. She encouraged international companies to participate, citing the proven potential of exploration activities in Israel’s waters.

In a related development, the ministry revealed plans to undertake a major infrastructure project involving the installation of a 150-kilometer electric transmission cable, including approximately 102 kilometers underwater. This cable will have a capacity of up to 5.4 gigawatts, making it one of the world’s largest submarine power lines.

The project aims to alleviate transmission bottlenecks between southern and central Israel, where most of the country’s electricity demand is concentrated. As Israel’s solar energy generation is largely based in the south, the cable will facilitate efficient power transfer to the center. The plan calls for multiple connection points along the route between Ashkelon and Haifa, with consideration for a future extension toward Europe to enhance cross-continental grid connectivity.

The ministry underscored that the underwater cable will support Israel’s goals of increasing reliance on renewable energy, reinforcing energy security, improving grid reliability, and minimizing environmental impact relative to land-based infrastructure.