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Chevron Partners Agree to Boost Gas Production of Israel Tamar Gas Field

The Tamar gas platform off the coast of Israel. (Chevron)
The Tamar gas platform off the coast of Israel. (Chevron)
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Chevron Partners Agree to Boost Gas Production of Israel Tamar Gas Field

The Tamar gas platform off the coast of Israel. (Chevron)
The Tamar gas platform off the coast of Israel. (Chevron)

Chevron and partners in the Israeli Tamar natural gas field agreed on Sunday to boost natural gas production capacity from the offshore field.
The gas field is a significant energy source for Israel and supplies Jordan for domestic consumption and Egypt for exporting the surplus to Europe.
The investment is part of a two-phase plan to expand natural gas production capacity from the Tamar field to about 1.6 billion cubic feet (BCF) daily.
Managing director of Chevron’s Eastern Mediterranean Business Unit, Jeff Ewing, said that reaching the final investment decision (FID) for Phase Two of Tamar’s expansion reflects Chevron’s ongoing commitment to partnering with Israel to continue the development of its energy resources for the benefit of domestic and regional natural gas markets.
Chevron stated that the second phase includes restarting the compressors in the onshore station in Ashdod based on a previous decision to invest in a third pipeline between the field and the drilling platform.
The two phases of the Tamar expansion are scheduled to be completed in 2025, at a total investment of $673 million.
For its part, Tamar Petroleum said in a statement that the new investment amounts to about $24 million.
On October 9, Israel suspended production in the Tamar gas field, which produced 10.25 billion cubic meters of gas in 2022, 85% of which was used in the local market, and 15% was exported to Egypt and Jordan.
On November 13, the field resumed part of its operational operations after a hiatus that lasted about five weeks.
On October 10, Chevron halted natural gas exports through the East Mediterranean Gas (EMG) pipeline between Israel and Egypt and said that it would import it through an alternative pipeline that passes through Jordan.
The EMG pipeline runs from the southern Israeli town of Ashkelon, some 10 kilometers north of Gaza, to El-Arish in Egypt, connecting to an onshore pipeline.
According to Bloomberg, the gas fields off the coast of northern Israel were operating at total capacity to compensate for the loss of production in the Tamar field.
At that time, natural gas prices in Europe witnessed an increase of more than 40%, to $59.2 per megawatt/hour, due to the repercussions that affected the supplies of the European continent, Jordan, and Egypt, as a result of halting the Tamar field.
However, it returned and declined after the return of production.

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Markets Wary as Trump Returns to the White House 

US President Donald Trump reviews the troops in Emancipation Hall during inauguration ceremonies at the US Capitol in Washington, on January 20, 2025. (AFP)
US President Donald Trump reviews the troops in Emancipation Hall during inauguration ceremonies at the US Capitol in Washington, on January 20, 2025. (AFP)
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Markets Wary as Trump Returns to the White House 

US President Donald Trump reviews the troops in Emancipation Hall during inauguration ceremonies at the US Capitol in Washington, on January 20, 2025. (AFP)
US President Donald Trump reviews the troops in Emancipation Hall during inauguration ceremonies at the US Capitol in Washington, on January 20, 2025. (AFP)

Financial markets swayed and wobbled at the beginning of Donald Trump's second US presidency after he made a softer start on China than many had anticipated, but then signaled punitive tariffs on North American neighbors within hours.

A wave of relief that swept across markets - as his speech and slew of executive orders imposed no new trade levies - was stopped in its tracks when Trump told reporters in the White House's Oval Office that he was thinking about 25% tariffs on Mexico and Canada from Feb. 1.

The dollar, which had slipped, reversed course to hit five-year highs on its Canadian counterpart.

Hong Kong shares rose, battery stocks fell and the trading day was a neat reminder of both the rollercoaster that markets rode through Trump's first term and how, this time, investors feel more sanguine about the risks.

"Prepared remarks and what's off the cuff - both of them will move markets," said Tai Hui, chief market strategist in Asia at J.P. Morgan Asset Management, at a briefing in Singapore.

"Rather than basing all our investment decisions on what is announced...we just have to maybe take a step back and just absorb," he said.

"What was said on the campaign trail...and what is now being studied and researched and implemented there's still going to be a significant gap."

Trump had vowed to immediately impose steep tariffs of 10% to 20% on global imports into the US and 60% on goods from China, but a memo he issued after taking office only directed agencies to research and investigate the US trade deficits.

The dollar hit a five-year high of 1.452 Canadian dollars before steadying around C$1.44. It rose but stayed below last month's highs on the Mexican peso.

Treasuries rallied and S&P 500 futures rose 0.2%. European futures slipped 0.4%. Chinese stocks and the yuan tentatively rose.

"Tariffs are necessarily an overhang," said Vis Nayar, chief investment officer at Eastspring Investments in Singapore.

"I think we should expect volatility. But there is hope that there is some pragmatism. We have to assume that he's not going to do anything that just brings up US inflation without paying attention to that."

PRO-BUSINESS, BUT AT A COST

Trump enters office with an ambitious agenda spanning trade, immigration, tax cuts and deregulation which has the potential to boost US corporate profits but which could also reignite inflation and put upward pressure on interest rates.

In his inaugural speech, Trump pledged to bolster the US oil, gas and power industries and to crack down on immigration.

He pardoned supporters who attacked the Capitol four years ago. He also withdrew from the Paris climate pact and declared an emergency to clear the way for more oil and gas production.

Battery stocks in South Korea fell after he revoked an order that had sought to ensure half of new cars sold in the US after 2030 were electric vehicles. A US holiday on Monday means that US equities will react on Tuesday.

"Most of what he has been talking about will help spur growth and corporate profits," said Jack Ablin, chief investment officer at Cresset Capital.

"But many will come at a cost. We will need to see a lot of earnings growth to make up for even a minor increase in interest rates that could follow higher tariffs" and other proposals, he said.

Cryptocurrency markets, which have soared in the run-up to Trump taking office, came under pressure as the lack of any instant crypto-friendly announcements stirred some disappointment. Bitcoin, which came close to $110,000 on Monday was trading around the $100,000 mark and a Trump-branded memecoin that hit almost $75 on the weekend fell to $36.

During the first year of Trump's first administration, the S&P 500 rose 19.4%, following a 5% rally in his first 100 days.

For the entirety of his first term, the S&P 500 rose nearly 68%, but saw bouts of volatility, stemming in part from a trade war Trump fought with China.

"The big question on investors' minds right now is going to be 'how' -- how will he cut costs and lower inflation and lower interest rates," said Josh Strange, president of Good Life Financial Advisors of NoVA, a financial advisory firm.