Israel has started a fresh competitive bidding round to locate additional natural gas deposits inside the nation's maritime economic zone, Energy and Infrastructure Minister Eli Cohen announced on Monday.

Under the initiative, five new exploration blocks will be offered, spanning roughly 7,100 sq. km., according to the ministry.

Ministry assessments suggest that hundreds of billions of cubic meters of natural gas could still lie undiscovered within Israel's exclusive economic zone at sea.

Locating these reserves would support domestic demand, boost market competition, raise government income, and help reduce electricity costs for Israeli consumers, the ministry noted.

Israel has already collected more than NIS 30 b. in direct revenues from gas, with projections pointing to hundreds of billions of shekels over the next 30 years, the ministry forecast.

Energy minister: 'Natural gas is strategic asset, strengthens Israel's economic, diplomatic standing'

Natural gas represents a strategic asset that bolsters both economic and diplomatic influence regionally and globally, Cohen stated.

His approach therefore focuses on widening exploration activities, drawing major international energy firms to invest locally, and raising output levels for both domestic use and overseas sales, he added.

Six exploration licenses were awarded to a consortium featuring the State Oil Company of the Republic of Azerbaijan, BP, and NewMed Energy, the ministry confirmed.

Seismic surveys will begin in coming months under these licenses, while output from the Tamar and Leviathan fields expands and the largest gas export agreement in Israeli history is finalized, the ministry said.

The export deal involves shipments to Egypt worth NIS 112 b., generating NIS 58 b. in state revenue, the ministry clarified.

The agreement also promotes regional stability through closer Egypt ties and creates conditions that attract further investment via competitive pricing and stable domestic tariffs.

The ministry works to secure reliable gas supplies locally while preserving an appealing investment climate and competitive rates, Director-General Yossi Dayan said.

The bidding round seeks to enlarge supply, heighten competition, draw new participants, and support market growth. Expanding supply rather than adding heavy rules offers the best route to competition and lower prices, Dayan added.

Besides market benefits, the process will reinforce Israel's energy security and its standing at regional and international levels for years ahead, he concluded.

Natural Resources Administration Director Chen Bar Yosef noted that the process will allow fresh major players to join development of the Israeli gas sector and the wider regional energy picture. Past experience shows strong success potential in Israel, and every relevant international party will be encouraged to bid, he said.

Israel intends to establish one of world's largest underwater power cables, Energy Ministry announces

At the same time, the ministry announced plans for a major infrastructure project involving an underwater electricity cable to ease transmission bottlenecks between southern and central Israel.

The cable will stretch about 150 km., with roughly 102 km. underwater, and will carry up to 5.4 gigawatts, ranking among the largest subsea power links globally.

The project stems from heavy concentration of generation assets, especially solar, in the south while most demand lies in the center, plus limited land for overland lines.

The cable will run from near Ashkelon to near Haifa and include six grid connection points, the ministry said.

Future links toward Europe are also envisioned to improve international connectivity.

The ministry sees the cable as a way to raise renewable energy use, strengthen security, improve reliability, and lessen environmental effects compared with land-based lines.