Dutch mentors want bigger stake in Israeli gas business

The Netherlands, after offering expertise for years in developing Israel’s offshore gas fields, is looking to get directly involved, now that its own gas supplies appear to be shrinking. That comes out of a get-together in Tel Aviv with a funky name.

The Dutch have relied on natural gas for nearly half of their energy, and as a result have gained a great deal of experience in managing gas deposits, while ensuring that the economy did not become overly dependent on sales of fossil fuels, and keeping the environment clean. Accelerated Israel-Dutch cooperation in the energy sector began in 2012, when dozens of energy executives and government officials came over to make deals with the consortium that is developing the Tamar and Leviathan gas fields.

Last week, another large delegation of 50 top representatives of the Israeli and Dutch natural gas sectors, ranging from pipeline experts to leading offshore companies, met for drinks in Tel Aviv at an event named aptly, if awkwardly, “Dutch Gas Business Drinks.” Representatives of most of the large Dutch gas firms attended, and nine Dutch companies delivered presentations. On the Israeli side, leading companies, experts and policymakers in the gas sector took part. After the presentations, the Dutch embassy hosted an informal network opportunity.

The story of the Netherlands’ involvement in the Israeli gas business is not well known, but it’s definitely worth noting. The Dutch have gained extensive knowledge in the natural gas sector since the discovery of the first gas fields there in 1948. When Israel discovered large stores of gas off its coast a decade ago, the country sought advice on developing its resources. While many countries have natural gas businesses, the experience of the Netherlands was a natural fit. Like Israel, it’s a relatively small country with a developed economy, highly dependent on imports for its energy needs.

Cooperation began over a decade ago, as Israel’s first fields were developed. Dutch firms were involved in the construction of the Tamar platform, and helped show the Israel Electric Cooperation (IEC) how to move from coal and diesel fuel to gas for electricity production. In addition, they helped the IEC set up its Gas Academy, which trains workers in metering and repair troubleshooting of gas-powered electricity systems. Dutch officials also helped the Israeli government set up its Natural Gas Authority (NGA), as well as the Israel Natural Gas Lines Ltd., the government-owned corporation that is setting up a national grid of gas lines.

The two countries hope to cooperate even more closely on natural gas in the future – good for Israel, which continues to draw on the experience of a veteran in the business, and good for the Netherlands as well, which has begun shopping around for reliable sources of natural gas now that its own supplies have shown some signs of dwindling.

“I see many opportunities for cooperation between Israel and the Netherlands in the natural gas sector,” said the ambassador of the Netherlands to Israel, Caspar Veldkamp. “Some companies and experts are already cooperating well.”

“This is not the first step in our cooperation on natural gas and it is definitely not the last,” Veldkamp said. “We are determined to build a long and prosperous relationship between Israel and the Netherlands in this field.”