Israeli minister resigns, paving way for gas deal

The government advanced the natural gas industry outline on Sunday, approving Shas leader Aryeh Deri's request to step down as economy minister, in a move meant to untangle regulatory obstacles that have been stalling the proposed bid for the past five months. Prime Minister Benjamin Netanyahu will hold the economy portfolio until a new minister is named for the role.

Deri will still head the Negev and Galilee Development Ministry, which the government voted to expand. The ministry will now be called the Negev, Galilee and Periphery Development Ministry, and it will have a budget of 600 million shekels ($155 million).


Credit: Reuters

Speaking at Sunday's cabinet meeting, Netanyahu said, "This is a significant step toward prompting [natural] gas supplies in Israel. Natural gas will be Israel's No. 1 growth engine in the coming years. This means billions of dollars in investments in the next two years, and the creation of supporting industries, meaning jobs for the Israeli public."

Natural gas supplies, Netanyahu continued, "will reduce energy prices and the cost of living, and will boost Israel's energy independence. We will not be dependent on foreign energy sources. This will yield hundreds of billions of shekels over the next 20 years, and the Israeli public will benefit from it, through welfare, education and health care budgets."

Commenting on the controversy surrounding the proposed natural gas framework, the prime minister said, "This reminds me of the arguments we all had before Highway 6 was built. Today, no one understands how we ever managed without it."

Highway 6, which traverses Israel from north to south, is the country's first, and so far only, toll road.

Netanyahu predicted that much like Highway 6, the natural gas outline will eventually enjoy a public consensus.

"In one, two, three years, everyone will understand this was a necessary step. I promised we will push this framework through and today we have taken the most significant step in that direction," he told the cabinet.

Sources in the Prime Minister's Office dismissed Channel 2 News reports suggesting that the trade portfolio would be placed under the purview of the Welfare and Social Services Ministry and given to Deri, and that current Welfare and Social Services Minister Haim Katz would be named economy minister.

Netanyahu has reportedly promised Deri additional compensation, befitting his senior position in the coalition.

"The reason I'm stepping down is because a solution to the gas framework has not been found," Deri said Sunday.

"From day one, I said I would not sign off on Article 52 [a ministerial order allowing the economy and trade minister to circumvent the anti-trust commissioner]. Israel has to promote the gas framework, and the current outline, which I did my best to improve, is the lesser evil. Israel needs the billions of shekels in gas revenue," Deri said.

National Infrastructure, Energy and Water Resources Minister Yuval Steinitz noted in the meeting that the cabinet has already approved the proposed framework, and that "enacting it will allow for the development of the Leviathan, Tamar, Karish and Tanin [offshore gas] fields. It will yield hundreds of billions of shekels in future revenues, boost Israel's energy security, and serve as an investment and growth engine for Israel in the years to come."

Leviathan, discovered in 2010 roughly 130 kilometers (81 miles) west of the coast of Haifa, holds an estimated 22 trillion cubic feet of natural gas. Tamar, discovered 80 kilometers (50 miles) west of Haifa in 2009, is believed to have reserves of up to 8.4 trillion cubic feet. The Tanin and Karish gas fields, discovered in 2012 some 120 kilometers (74 miles) northwest of Haifa's shores, are each believed to hold about 1.3 trillion cubic feet of natural gas.

Meanwhile, the opposition criticized what it called the government's "musical chairs" and its ramifications.

Yesh Atid announced it has appealed to Attorney General Yehuda Weinstein, asking him to prevent Netanyahu from keeping the economy portfolio.

"Once Minister Deri's resignation takes effect, the prime minister will effectively control four portfolios, namely foreign affairs, communications, economy and regional cooperation. As you know, a petition on this very issue is pending before the High Court of Justice, which will have to decide whether according to Basic Law: The Government, the prime minister is allowed to hold additional portfolios. We ask that you order [the government] to refrain from giving the prime minister a fourth portfolio pending the court's decision on the matter," the appeal said.

Opposition Leader Isaac Herzog (Zionist Union) criticized the move, saying, "The cynical game played with the economy portfolio is a disgrace to the government and its ministers."

Meretz leader Zehava Galon said, "This deal reeks of crony capitalism to high heaven. It means to serve Yitzhak Tshuva and Noble Energy's interests and theirs alone."

Texas-based Noble Energy and the Tshuva-owned Delek Group control the Leviathan, Tamar, Tanin and Karish offshore gas fields.

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