Israel is exploring options for building an onshore or floating LNG (FLNG) facility offshore, potentially expanding the country’s lucrative natural gas exports and its foothold in the global market.

Over the past several years, the Israeli Energy Ministry has taken steps to use two of the country’s massive gas discoveries, the Tamar and Leviathan fields, to become a regional gas hub in the Eastern Mediterranean. However, without a liquefied natural gas facility of its own, Israel is currently dependent on pipeline exports to Egypt’s two terminals to deliver its volumes to global buyers.

Israeli news media reported that Energy Minister Eli Cohen had ordered a study of the country’s options for building its own LNG export terminals, citing sources within the...