Israel is running out of natural gas as the only existing production field, the Mary-B field off the Ashkelon coast, is close to being depleted. This could lead to electricity shortages, planned blackouts - and much higher electricity rates. The shortage is expected to last at least until next year, when the Tamar gas field starts production, The Marker reported.

This shortage comes on top of the problems with the supply of Egyptian natural gas, which provided 40% of Israel's gas before continued attacks on the gas pipeline in Sinai suspended gas supplies for months. The current supply from Egypt, which could stop again at any time, is about 25% of the amount the Egyptians are committed to providing.

The alternative to natural gas is powering electricity plants with diesel or heavy fuel oil, both of which are much more expensive and more polluting. It would necessitate higher electricity rates. A 6.6% electricity price hike is already scheduled, and an additional 13.4% price hike is in the works over the next three years. Even worse, the infrastructure for supplying diesel fuel is inadequate to meet the quantities required to supply all the Israel Electric Corporation's power plants and replace the natural gas. This could force blackouts.

Noble Energy, which operates the Mary-B field for the Tethys Sea partnership, has halted production at eight of the 10 wells in the field over the past few weeks. The remaining gas in the other two wells will run out within a few weeks at the present rate of production. The Energy and Water Resources Ministry, previously known as the National Infrastructure Ministry, is expected to order Noble Energy to cut back on its gas production within the next few days, for the fourth time so far this year. The idea is to draw out the supply of gas from the offshore field for as long as possible and allow increased production during the hot summer months when electricity demand reaches its peak.