After the Leviathan gas reservoir partners signed a massive deal
with Jordan, Israel is now looking to lay
a pipeline to Cyprus and Greece, so Israeli gas can be exported there and to
other European countries, National Infrastructure, Energy and Water Minister
Yuval Steinitz said Tuesday.
Steinitz, speaking to reporters before the weekly cabinet meeting that was
pushed from Sunday to Tuesday because Prime Minister Benjamin Netanyahu was in
the US, related to Monday’s announcement of a massive gas deal with Jordan,
saying it was an "historic” day for the country, because for the first time in
its history it became an energy exporter.
Steinitz said that he was
going to Athens on Wednesday to meet with his counterparts in Greece and Cyprus
to discuss the laying of a "long” pipeline to Cyprus and then to Greece, and
from there further inland to other parts of Europe.
"We will export gas to other countries in the region, and also to Europe,”
Steinitz said. "That will turn us into a world energy player and enable us to
discover and develop additional large gas fields.”
Map showing planned pipelines running from Israel's Levianthan natural gas rig
into Jordan
Steinitz’s visit to Greece and Cyprus comes just a month after a Greek
hydrocarbon exploration and production, Energean Oil & Gas, announced its
intentions to enter Israeli waters. Although still pending Israeli government
approval, Athens-based Energean Oil & Gas signed a $148.5 million deal in
mid-August to purchase the Karish and Tanin gas reservoirs from two Delek Group
subsidiaries.
As far as Monday’s deal with Jordan is concerned, the Leviathan basin partners
will be supplying Jordan's National Electric Power Company Ltd. (NEPCO) with a
gross quantity of 45 billion cubic meters of gas, or 8.5 million cubic meters
daily, over a 15-year period. Houston-based Noble Energy – which holds
the largest share in the 621-BCM reservoir – announced the execution of the gas
sales and purchase agreement on Monday afternoon.
Gas supplied through the $10 billion contract will involve industry-typical
"take-or-pay" commitments, with pricing linked to Brent oil and a
firm floor price, a statement from Noble Energy said.
The buyer also has the option to purchase an incremental 1.4 MCM per day for a
total of up to 9.9-MCM per day, the statement added.
The initial field development will involve a subsea connection to a
shallow-water platform. with a pipeline leading to Jordan. Leviathan’s
stakeholders said they aim to complete construction, and begin delivering gas
to Jordan, in as little as three years.
Prime Minister Benjamin Netanyahu termed the accord a "very important
agreement” that both significantly promotes the Israeli energy market and
"strengthens ties with Jordan.”
He said that Israel is now reaping geo-political, economic and social benefits
from extracting the gas from the ground.
(Jerusalem Post)
