Karish fuel subject resumes manufacturing
Following the ceasefire between the US, Israel and Iran, the Karish offshore fuel rig can be again in operation, regardless of its location near Lebanon and the absence of a truce between Israel and Hezbollah.
The Karish platform has been idle for 40 days, and is the final to renew manufacturing, after the Leviathan subject recommenced operations a couple of week in the past. The Tamar subject continued working all through the warfare.
Energean (LSE: ENOG; TASE: ENOG), which operates the Karish rig, stated, “We’re working to renew manufacturing safely and return operations to regular in accordance with procedures.” This follows a dispute between the Ministry of Power and Infrastructure, which needed to return the power sector to regular operations, and the Ministry of Protection, which needed to cut back dangers as a lot as attainable.
The Ministry of Power stated, “Following assessments of the state of affairs and examination of all related issues, the ministry determined to instruct Energean to start restoring the Karish rig for exercise. The ministry continues to work to make sure the continuity of power provide to all shoppers within the Israeli financial system and is monitoring developments and is working along with all events within the power sector and with the safety businesses to this finish.”
Use of coal reached the utmost
At first of the warfare on February 28, the Leviathan and Karish offshore fuel fields had been shut down, whereas Tamar, the sector that provides a lot of the fuel for the home financial system, continued to function repeatedly all through the warfare.
In regular instances, Israel’s electrical energy grid is predicated primarily on native fuel reserves: Leviathan, Tamar (together with Tamar Southwest) and Karish (together with Tanin, Katlan and Dragon). Past that, there’s manufacturing utilizing renewable power and a small quantity of coal. However from the second the most recent warfare with Iran broke out, Leviathan and Karish had been shut down to guard them from an Iranian assault (and later, from Hezbollah).
As a substitute, in response to knowledge from the earlier warfare in opposition to Iran, coal use rose to a most. Throughout peak consumption instances, when even that was not sufficient, Israel’s grid even switched to utilizing diesel, which is the nation’s emergency gas. This led, for instance, to the Ministry of Finance’s choice to dramatically cut back the excise tax on diesel gas to the identical degree as the extra tax on pure fuel for electrical energy manufacturing. This was finished to stop extreme will increase in electrical energy charges.
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On April 2, after 32 days of combating, the Leviathan subject was allowed to renew manufacturing. This was resulting from a mixture of the decreased threat it confronted, because the rig is comparatively near the coast, and strain from Egypt and Jordan by way of the US, as these international locations are significantly depending on fuel from Leviathan. Egypt imposed energy outages due to the fuel shortfall from Leviathan.
Not like the Leviathan subject, which is comparatively near the Israeli coast, the Karish subject is dozens of kilometers out at sea, and within the north not removed from the Lebanese coast. Nonetheless, it was determined to open the Karish subject, because the ceasefire with Iran, reduces dangers.
Whole injury from fuel subject shutdown was about NIS 1.7 billion
As a result of excessive prices of coal and diesel, relative to pure fuel, which is comparatively low cost in Israel, the shutdown of the fuel fields induced injury to Israel’s financial system: BDO chief economist Chen Herzog estimates that the shutdown of Leviathan for a month value the Israeli GDP about NIS 1 billion as a result of elevated value in producing electrical energy, lack of income for the state and losses for the pure fuel corporations. The shutdown of the Karish subject value about NIS 500 million per thirty days, which means {that a} 40-day shutdown value an extra NIS 660 million. Whole injury from the shutdown of the fuel fields was NIS 1.7 billion.
Printed by Globes, Israel enterprise information – en.globes.co.il – on April 9, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
