Gas shortages loom in Israel, casting a shadow over the nation's energy security. The situation is particularly dire for businesses and industries that rely on LPG (liquefied petroleum gas) for their operations. Despite the government's assurances, the country's LPG stockpile is alarmingly low, and the situation is expected to worsen with the arrival of winter.
The food production, agriculture, petrochemicals, printing, restaurant, and hotel sectors are in a race against time to secure enough gas to keep their operations running. During times of scarcity, priority is given to these businesses and institutional consumers, pushing private consumers to the back of the line. However, the state's response has been deemed insufficient, if not negligent.
In early January, after substantial amounts had already been drawn from emergency reserves, a gas ship arrived at the Ktsaa terminal, offering some relief. But it's not enough. Approximately 60 trailers are en route to Ashkelon Port to unload gas containers, but sources indicate that a single late shipment is insufficient to address the crisis. Israelis could wake up one morning to discover they are out of cooking gas, an unusual shortage that has been building over the past decade.
The LPG market has been operating with very limited security stock, relying heavily on local refinery production from the Bazan complex in Haifa Bay. This structural decision was based on the assumption that imports could quickly fill any gaps during shortages. However, this assumption has left the economy with thin margins, making it highly vulnerable to disruptions. Bazan supplies a significant portion of the country's cooking gas and has long been considered a critical infrastructure facility.
Emergency preparedness documents and scenarios identified damage to the complex as a risk with potentially widespread consequences, especially for the LPG market. This risk materialized in June 2025 when an Iranian missile struck the Bazan complex, causing major shutdowns and operational disruptions, including damage to the internal power station. Tragically, three workers lost their lives, and the facility was temporarily shut down. Since then, the LPG market has been operating under tension.
While it is possible to fill the gap through imports, it is expensive, depends on ship availability, and is hindered by limited unloading infrastructure, reducing operational flexibility. Demand for gas has remained high, and in some periods, even increased, partly due to changes in consumption habits and the onset of winter. The Ministry of Energy and Infrastructure responded in early January, asserting that no disruption to LPG supply is expected and that new imports are being unloaded to meet demand.
The ministry claims that there has been no shortage of supply to consumers during the fighting or at any other time, and that they are working to ensure the availability of LPG. However, the situation remains tense, and the country's energy security is at stake. Israelis are left wondering if they will wake up one morning to discover they are out of cooking gas, a stark reminder of the fragility of their energy infrastructure.
