New Med Energy: A Bottleneck in the Supply Chain of the Israel’s Gas

New Med Energy (NWMD), previously known as Delek Drilling, is an Israeli gas company involved in the exploration, development, and production of natural gas and condensates. This company, which is a subsidiary of the Delek Group, was established by Avinoam Finkelman following an agreement signed on July 1, 1993, between Delek Drilling Management Ltd and Delek Drilling Trusts Ltd [1].

In February 2022, as part of a rebranding process, the company changed its name from Delek Drilling to New Med Energy. New Med Energy was the first company, along with its partner Noble Energy, to supply natural gas commercially to the Israeli economy. In 2000, this company received the first-ever permission in the history of the Israel to establish infrastructure for electricity production using natural gas in Israel [2]. The Avner company is also a subsidiary of the Delek Group. Avner Partnership was established in 1991, two years before Delek Drilling, by Dr. David Cohen, Dr. Eli Rosenberg, and Gideon Tadmor. In 1998, collaboration between these two companies began, culminating in the merger of Avner into Delek Drilling in 2017 [3]. This merger solidified Delek Drilling (New Med Energy) position as a leading exploration organization in Israel. The participating units in the merger are traded on the Tel Aviv Stock Exchange and are considered one of the ten largest trading entities in the Tel Aviv stock market [4].

The Importance of New Med Energy

This company holds a 45.34% stake in the Leviathan gas field the largest gas field in the Mediterranean Sea, and a 31.25% share in the Tamar field [5]. The gas produced from Leviathan serves as the primary energy source for the Israel.

Additionally, New Med Energy and its partners have plans to double the production from the Leviathan field by 2027, as well as to develop a liquefied natural gas (LNG) terminal. The development of natural gas infrastructure in the Eastern Mediterranean is crucial, as it can alleviate some of the pressure on European countries following the cut in gas exports from Russia to Europe, and it may also alter geopolitical relations.

The Leviathan gas field is of great significance to the Israel, viewed as a tool to reshape foreign relations with neighboring countries, including Turkey and Egypt [6]. The expansion of various energy activities in the Eastern Mediterranean enhances the security of the Israel, as evidenced by the cooperation between Turkey and Greece on both the Trans-Anatolian Natural Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP). Developing the Eastern Mediterranean energy pipeline is an important means of delivering Caspian Sea energy to European markets and other global markets.

Trans-Anatolian Natural Gas Pipeline (TANAP) and Trans-Adriatic Pipeline (TAP)

For the Israel, participation in the development of the Eastern Mediterranean signifies a tangible step towards economic integration in the surrounding region and provides opportunities to strengthen diplomatic relations through commercial efforts. The offshore gas-rich area that includes Egypt, occupied Palestine, Cyprus, and Lebanon has attracted major energy companies worldwide in recent years, especially since Europe began seeking alternatives to gas imports from Russia. Consequently, any harm to New Med Energy could disrupt the production and development of the Leviathan and Tamar fields, adversely affecting the supply of gas consumed in the occupied territories and its exports, as well as diminishing the Israel’s foreign currency income. Striking at New Med Energy could be achieved through public pressure on its partners in the Islamic world to sever ties with the company. This company collaborates with partners in Jordan, Egypt, the United Arab Emirates, Azerbaijan, and Morocco.

Collaborating Companies of New Med Energy in the Islamic World

The scope of cooperation is extensive, encompassing gas exports, purchasing shares of New Med Energy, and forming consortiums to execute exploratory projects in the occupied territories.

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