IENE has just sent to its members the latest issue of its electronic newsletter “S.E. Europe Energy Brief – Monthly Analysis”. This issue (No. 183,September 2015), entitled “Zohr: A Game Changer for East Mediterranean Gas” examines the implications of this huge gas discovery in offshore Egypt, on August 30, by Italian oil firm ENIIENE has just sent to its members the latest issue of its electronic newsletter "S.E. Europe Energy Brief – Monthly Analysis”. This issue (No. 183,September 2015), entitled "Zohr: A Game Changer for East Mediterranean Gas” examines the implications of this huge gas discovery in offshore Egypt, on August 30, by Italian oil firm ENI.
Zohr, considered to contain the largest known natural gas deposit in the Mediterranean in Egyptian waters, gives Egypt much hope that it could soon re-establish its energy independence with natural gas supplies ending several difficult years for the country’s energy sector.
By global standards Zohr is a monster, surpassing by far in size Israel’s also giant gas field, the Leviathan. As the Financial Times noted on September 6 "It is rare to find an oil or gas field so big that it can transform an economy”. The field lies far below the seabed in waters almost 1,500 metres deep, but is within easy reach of existing infrastructure, making it relatively simple to develop. Claudio Descalzi, Eni’s chief executive, says itholds 30tn cubic feetor more of natural gas — equivalent to 5.5bn barrels of oil. Indeed, such is its size that Zohr’s importance to Egypt is "enormous”, says Wood Mackenzie, the energy consultancy. When the project comes on stream, possibly as soon as 2019, it will meet the country’s domestic gas demand for at least a decade, eliminating the need for imports. The discovery’s impact will be felt beyond Egypt, too, and especially in Israel, where energy companies harbour ambitions to sell gas from its recently discovered, and now overshadowed, Leviathan field to Cairo.
Thus, t his latest IENE analysis describes the basic facts related to Zohr, as well as the implications of the discovery and its prospects for Egypt, Israel, Cyprus and the entire Southeast Mediterranean and also its impact on the East Med pipeline project, as an alternative EU gas supply source.
Last but not least, it should be mentioned that a major part of this analysis is based on a presentation made by Dr. Charles Ellinas, former Chairman of the Cyprus National Hydrocarbons Company, in the recent Global Oil & Gas Black Sea and Mediterranean, which took place on September 23-24, 2015 (see http://www.global-oilgas.com/BlackSeaMed/Home.aspx). IENE acknowledge with thanks his most valuable contribution.
