Friday, August 9, 2013

Solon Kassinis Energy Training School & Research CenterTRE | UCLan Cyprus

Latest News  / August 9, 2013

SOLON KASSINIS ENERGY TRAINING SCHOOL & RESEARCH CENTRE

The Institute of Professional Studies of UCLan Cyprus in exclusive co-operation with Mr Solon Kassinis announces the establishment and operation of  the "Solon Kassinis Energy Training School & Research Centre". The Centre is named after Mr Solon Kassinis in order to honour him for his contribution regarding Energy issues in Cyprus.  Mr Kassinis is the Chairman of the Centre.
The aim of the "Solon Kassinis Energy Training School & Research Centre" is to prepare  young Cypriots through professional training, enabling them to secure employment in the field of hydrocarbons thus creating strong potential for further advancement in the energy development sector. 

The Centre will be situated in the new wing of the University which will be completed by the end of September 2013


Link to article: http://www.uclancyprus.ac.cy/en/news/latest-news/solon-kassinis-energy-training-school-research-center/

«Solon Kassinis Energy Training School & Research Centre» στο UCLan Cyprus! | ΦΙΛΕΛΕΥΘΕΡΟΣ

«Solon Kassinis Energy Training School & Research Centre» στο UCLan Cyprus!


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Λευκωσία: Το Ινστιτούτο Επαγγελματικών Σπουδών του Πανεπιστημίου UCLan Cyprus σε αποκλειστική συνεργασία με τον κ. Σόλωνα Κασίνη ανακοινώνει την δημιουργία του «Solon Kassinis Energy Training School & Research Centre». Το Κέντρο φέρει το όνομα του κ. Σόλωνα Κασίνη σε ένδειξη εκτίμησης και σεβασμού προς το πρόσωπό του για την μακροχρόνια και συστηματική προσφορά του στα θέματα ενέργειας της Κύπρου. Ο κ. Κασίνης  θα είναι ο Πρόεδρος του εν λόγω Κέντρου.

Στόχος του «Solon Kassinis Energy Training School & Research Centre» είναι η σωστή προετοιμασία των Κύπριων νέων μέσω της κατάλληλης εκπαίδευσης και επαγγελματικής κατάρτισης ώστε με αξιώσεις να μπορούν να εξασφαλίσουν μια θέση εργασίας στον τομέα των υδρογονανθράκων με δυνατές προοπτικές ανέλιξης, ενισχύοντας έτσι το κυπριακό εργατικό δυναμικό για δυνατή συμμετοχή στον τομέα της ενέργειας.

Το Κέντρο θα στεγάζεται στην νέα πτέρυγα του Πανεπιστημίου, η οποία ολοκληρώνεται τέλος Σεπτεμβρίου 2013.
- See more at: http://www.philenews.com/el-gr/oikonomia-epicheiriseis/156/157229/solon-kassinis-energy-training-school--research-centre-sto-uclan-cyprus#sthash.QCqFcbNX.dpuf




Link to article: http://www.philenews.com/el-gr/oikonomia-epicheiriseis/156/157229/solon-kassinis-energy-training-school--research-centre-sto-uclan-cyprus

Thursday, August 8, 2013

Έλληνας: "Δεν θα παραιτηθώ από την ΚΡΕΤΥΚ" | Sigma Live


Έλληνας: "Δεν θα παραιτηθώ από την ΚΡΕΤΥΚ"


«Δεν πρόκειται να παραιτηθώ από την ΚΡΕΤΥΚ» διαμηνύει ο Πρόεδρος της εταιρείας, Χαράλαμπος Έλληνας, τονίζοντας ότι βρίσκεται σε αναμονή της απόφασης του Προεδρικού για το μέλλον του στα αναδημιουργημένο σχήμα της εταιρείας υδρογονανθράκων. Την ίδια στιγμή, εκφράζει την άποψη ότι η κύπρος είναι αναξιόπιστη στα μάτια των ξένων, σε ότι αφορά τα θέματα φυσικού αερίου, τονίζοντας πως αυτή η εντυπωση πρέπει να αλλάξει.
Το θέμα της παραμονής ή όχι του Χαράλαμπου Έλληνα στην ΚΤΡΕΤΥΚ, θα τεθεί στο επίκεντρο συνάντησης του Προέδρου της Δημοκρατίας με τον υπουργό Ενέργειας εντός του επόμενου διημέρου.
Μιλώντας στο Sigmalive, ο κ. Έλληνας ανέφερε ότι συναντήθηκε χθες με τον Γιώργο Λακκοτρύπη, στον οποίο μετέφερε τις απόψεις του για το πώς πρέπει να προχωρήσει η εταιρεία. Ξεκαθάρισε επίσης ότι ο ίδιος επιθυμεί να παραμείνει, με τον υπουργό να του μεταφέρει ότι το μέλλον του στο νέο σχήμα της ΚΡΕΤΥΚ θα αποφασιστεί από τον Προεδρικό.
Πάντως, ο κ. Έλληνας παρουσιάστηκε απογοητευμένος από την αντιμετώπιση που έχει ίδιος από την παρούσα Κυβέρνηση. «Η κυβέρνηση έχει δικαίωμα να κάνει ότι θέλει. Αν δεν έχω ρόλο στο νέα σχηματισμό της εταιρείας, θα το σεβαστώ», ανέφερε χαρακτηριστικά.
«Παράτησα όλα όσα έκανα στο εξωτερικό και ήλθα στην Κύπρο για να βοηθήσω στον τομέα των υδρογονανθράκων, δεν περίμενα ποτέ ότι θα αντιμετώπιζα όλα αυτά», δήλωσε χαρακτηριστικά. 
Σε ότι αφορά τις εργασίες για το Φυσικό Αέριο, επανέλαβε ότι έχει να γίνει ακόμη πολύ δουλειά. «Χρειαζόμαστε», πρόσθεσε, «ανθρώπους εγνωσμένου κύρους, με διεθνή αναγνώριση, εμπειρίες και γνώσεις στον τομέα του Φυσικού Αερίου».
«Είμαστε αναξιόπιστοι στα μάτια των ξένων»
Ο Χαράλαμπος Έλληνας τόνισε ότι η Κύπρος είναι αξιόπιστη στα μάτια των ξένων, σε ότι αφορά το θέμα του Φυσικού Αερίου. Όπως ανέφερε, τις προηγούμενες ημέρες παρεβρέθηκε σε συνέδριο στο Λονδίνο για το θέμα της ενδιάμεσης λυσης Φυσικού αερίου και διαπίστωσε ότι οι ξένοι μας βλέπουν ως αναξιόπιστους.  Χαρακτηριστικό παράδειγμα, πρόσθεσε, το γεγονός ότι εδώ και καιρό λέμε να αποφασίσουμε για το τι θα γίνει με την ενδιάμεση λύση Φυσικού αερίου και συνεχώς το αναβάλλουμε, παρατίνοντας τη διαδικασία.
«Έχουμε μεγάλο ανταγωνισμό στο θέμα του Φυσικού αερίου» ανέφερε με νόημα, προσθέτοντας πως αν δεν είμαστε αξιόπιστοι, οι ενδιαφερόμενοι επενδυτές θα κάνουν διπλές σκέψεις. «Για να έλθει κάποιος να επενδύσει, θα πρέπει να είναι σίγουρος ότι δεν θα υπάρξουν προβλήματα και αλλαγές στο μέλλον», ανέφερε χαρακτηριστικά.
Ερωτηθείς για το τι πρέπει να κάνει η Κύπρος για να επανακτήσει την εμπιστοσύνη των επενδυτών, τόνισε ότι χρειαζόμαστε σταθερότητα. «Χρειαζόμαστε ένα σύστημα σταθερό, με τον αγοραστή να μπορεί να βλέπει τους ενδιαφερόμενους στην Κύπρο όποτε θέλει και να υπάρχουν σταθερά άτομα σε συγκεκριμένες θέσεις, ώστε να μπορέσουν να κτίσουν σχέσεις εμπιστοσύνης», υπέδειξε ο κ. Έλληνας. 
- See more at: http://www.sigmalive.com/news/local/59425#sthash.7pePuEDm.oFEMUS66.dpuf

Link to article: http://www.sigmalive.com/news/local/59425

Cyprus President invites Israel to seriously consider exporting gas from Cyprus LNG plant | Famagusta Gazette


Cyprus President Nicos Anastasiades has invited Israel to seriously consider committing to exporting Israeli gas from the Cyprus LNG terminal. He made statement during the official ceremony for the inauguration of the Limassol Desalination Plant.

FAMAGUSTA GAZETTE
President Nicos Anastasiades has invited Israel to seriously consider committing to exporting Israeli gas from the Cyprus LNG terminal.

On his part Israeli Minister of Energy and Water Resources Silvan Shalom stressed that relations between the two countries are not only based on the economy but are also “geopolitical and strategic”.

The two men were addressing an official ceremony for the inauguration of the Limassol Desalination Plant.

“In view of the fact that my Government is moving forward with determination with the construction of an LNG plant, in order to realize the significant potential of becoming the Eastern Mediterranean’s energy hub, I invite the Government of Israel to seriously consider committing to exporting Israeli gas from the LNG facility”, President Anastasiades noted in his address.

This, he added, “is all the more pertinent if one takes into account that Cyprus is perhaps Israel’s most stable partner in the region”.

He highlighted the fact that “our proximity to the Suez Canal is an important factor favouring the creation of a regional energy hub in Cyprus for the transportation of natural gas from Eastern Mediterranean countries, not only to Europe, but also to the Far East”.

“All of the above constitute key components of Cyprus’ vision not only as regards our energy co-operation with Israel, but also as regards energy co-operation in Eastern Mediterranean”, he said.

The Cyprus President further pointed out that a “web of natural gas transportation projects in the Eastern Mediterranean will serve as a means to potentially strengthen regional energy security and attract foreign investments, leading to job creation; this should serve as a boost to the economies of our region”.

He also spoke of the role energy could place in contributing to the peace and stability in the region to the benefit of all.

“Energy should not be a source of conflict, but a tool for conflict resolution and regional integration”, he said.

President Anastasiades expressed the hope that “we will soon have the opportunity to inaugurate many other projects that will be commonly undertaken by various entities, from both the public and private sectors of Israel and Cyprus, resulting in increased prosperity for both our nations, such as this vivid example of the Consortium Mekorot, Logicom and Demetra Investments”.

During his address he also spoke of “the great importance of adopting technology and learning from technological know-how of our neighbours in Israel, whose level of technological expertise is second to none”.

Therefore, he added, “I would like to request the Minister of Energy and Water Resources of the State of Israel, Mr Shalom, to convey our gratitude to my friend, Prime Minister Benjamin Netanyahu, for the cooperation, help and support that was tangibly provided and continues to be provided by Israel”.

Referring to the new desalination plant he pointed out that “together with the existing plants already operating and those that are being upgraded, now guarantee that not only Limassol, but all of Cyprus, will never go thirsty again”.

On his part Shalom also pointed out the significance of the new desalination plant and the fact that it was built by the National Israeli Company. I think, he said, it shows that we can work (together) on many fields, in water, energy and other fields”.

“I think we can work together because we look at Cyprus as one of the main and central allies of Israel in our region and as a whole”, he stressed.

Referring to the problems the Middle East is faced with he said that Cyprus was “a solid rock and a very good friend of Israel in all fields”.

Cooperation in the fields of water and energy, he pointed out, “shows the strength of the alliance between Israel and Cyprus, economically and politically as well”.

He thanked President Anastasiades for his recent visit to Israel and for promoting better relations between Israel and other countries, conveying “a message of friendship” on the part of the Israeli Prime Minister Benjamin Netanyahu.

Cypriot Minister of Energy, Commerce, Industry and Tourism Giorgos Lakkotrypis, Israeli Minister of Energy and Water Resources Silvan Shalom and Greek Minister of Environment, Energy and Climate Change Yiannis Maniatis will be meeting on Thursday in Nicosia and are due to sign a Memorandum of Understanding in the field of energy and water resources.  — (KYPE)

SOURCE

Wednesday, August 7, 2013

Negotiations for Cyprus LNG terminal enter substantive phase, Energy Minister says | Famagusta Gazette

Negotiations between Cyprus and Noble-Delek for the liquefaction terminal of natural gas, to be built at Vasilikos on the southern coast, are entering a substantive phase Minister of Energy, Commerce, Industry and Tourism George Lakkotrypis told CNA today.

Lakkotrypis said that negotiations on the LNG terminal have been underway for about a month and now they have entered “deep waters” and “substantive” phase, noting that they concern the structure and the share capital of the terminal.

The Minister said negotiations should be completed by December 2013, when a final agreement is expected to be reached, based on the Memorandum of Understanding signed in late June between Cyprus and three companies Noble, Delek and Avner.

Asked about the appraisal drilling in Cyprus` Block 12 by Houston based Noble, Lakkotrypis said the key stage of the drilling has been completed, adding that the drilling has reached a depth of more than 5,600 meters below sea level.

He also noted that the evaluation process regarding the geological data obtained from appraisal drilling has already begun and will last a few weeks.

Asked if there are any early indications as regards the results of the drilling, he said that evaluation process must be completed first before final results are announced.

Asked whether a second appraisal drilling would be necessary, he said that it will become clear in due time.

On the interim solution for the supply of natural gas to Cyprus, he said that a final decision on the interim gas solution is expected to be announced in two weeks at the latest.

Asked to comment on tomorrow`s arrival in Cyprus of Energy Ministers of Israel and Greece, he said that a Memorandum of Understanding between the three countries will be signed during the visit of the two Ministers here.

He said the MoU will constitute the "the framework of a tripartite dialogue on energy issues and water resources with specific suggestions for actions such as the protection of the environment and the management and development of water resources."

— (KYPE)







Link to article: http://famagusta-gazette.com/negotiations-for-cyprus-lng-terminal-enter-substantive-phase-energy-minist-p20193-69.htm

Doubts arise on Aussie energy giant’s role in Leviathan gas field | Haaretz

Prospectus by site’s stakeholders calls for exporting gas via sea pipeline to Turkey, Greece and Cyprus.
By  Aug. 7, 2013 | 6:13 AM
Drilling platform of the Leviathan natural gas field.
Drilling platform of the Leviathan natural gas field. Photo by Albatross
Australian energy giant Woodside Petroleum's entry as a partner in Israel's natural gas field Leviathan seems a more distant prospect following the publication of a prospectus by two current partners in the field on Tuesday night.
Woodside, which specializes in projects requiring shipping liquid natural gas over long distances, was supposed to purchase a 30% stake in Leviathan for $1.25 billion. The Australian company intended to build a liquefied natural gas plant to transport gas from the field to customers in East Asia.
However, the prospectus published by Avner Oil & Gas Exploration and Delek Drilling from the Delek Group did not discuss the East Asia option. Rather, it stated that talks were being conducted about exporting gas through a sea-based pipeline to Turkey, considered the principal destination, to Greece and Cyprus, and to the Israeli coast as well as to Jordan and the Palestinian Authority by a land-based pipeline.
Another possibility, mentioned for the first time, was pumping natural gas through a sea-based pipeline to a liquefaction facility in Egypt.
The Leviathan gas field is a deepwater field located in the Mediterranean Sea off the coast of Hadera.
It is considered the largest natural gas discovery in the world in the past decade, with an estimated 18 trillion cubic feet in natural gas reserves.
There is also a significant likelihood that oil will be discovered deeper under the seabed in the field, with oil explorer Noble Energy expected to drill a test well 6.5 kilometers below sea level by year’s end.
Leviathan's owners Delek Group, Nobel Energy and Ratio Oil Exploration signed an initial agreement with Woodside in December 2012 to give the latter a stake in a deal that valued the field at $5 billion.
Based on natural gas futures prices the value of the field is now closer to $8.3 billion.
A final agreement has yet to be signed by the parties, while they wait for the government to reach a final decision regarding the permissible level of natural gas exports.
The prospectus added weight to a report by TheMarker last week that the Woodside deal was likely to be altered or canceled because the field partners were would request a higher price than the one set in the initial agreement.
This higher price reflects an increased value of Leviathan due to the possibility of exporting the natural gas through a sea pipeline to Turkey, which opened up only after the initial deal with Woodside.
The prospectus stated that exporting natural gas to Greece and Turkey would allow it to be transported to the rest of Europe, but an initial study showed that laying a pipeline to Europe would be "a complex engineering project with geopolitical complexity."
The possibility of merging Avner Oil & Gas Exploration and Delek Drilling was also mentioned.
Delek Group stated that it had already contacted tax authorities regarding the possible merger.





Link to article: http://www.haaretz.com/business/.premium-1.540159

Painting the new Cypriot energy landscape | Spipping Herald

7/8/2013
By Christos Meliopoulos

The energy bonanza that is in the offing in Cyprus is becoming a little bit more real and tangible this week, with a triple “attack” on targets that are pursued simultaneously.

In the shorter-term development, the ongoing appraisal drilling in Block 12 of the Aphrodite natural gas field has reached the climax of its first phase. The drill of Noble’s ENSCO 5006 platform has gone beyond 5,600 metres beneath sea level, as the Minister of Energy, Commerce, Industry and Tourism George Lakkotrypis said. Industry experts say that now is the turn of the evaluation of the geological data collected in the process. According to the minister it will take a few weeks to determine where Cyprus stands.

In the meantime, this week sees the first round of negotiations between the Cypriot government and Noble-Delek, the American and Israeli companies, respectively, that will participate in the project of the liquefaction of the Cypriot gas along with Anver.

Reports say that the Noble-Delek representatives are ready to present specific proposals on the structure and the share capital of the LNG (Liquefied Natural Gas) terminal that will be built in Vasilikos. The Cypriot side is said to be in a listening mood during this first round of discussions, as Nicosia has decided to hire consultants to assist in the creation of a sufficiently mutually beneficial plan which will be later presented to the other side. This is not planned to happen for at least a couple of more weeks.

The wider diplomatic, political and economic aspect of the energy activity in the area is best reflected in a third development, the meeting between the Energy Ministers of Cyprus, Greece and Israel in Nicosia this week. The three countries’ energy future seems inextricably linked and the tripartite meeting serves as a timely opportunity to gauge each other’s commitment to the projects in hand.

Apart from the natural gas front, the three countries are talking about another highly significant commodity, water. The signing of a Memorandum of Understanding sets “the framework of a tripartite dialogue on energy issues and water resources with specific suggestions for actions such as the protection of the environment and the management and development of water resources,” as Mr Lakkotrypis said.

Cyprus is also keen to discuss with Israel the collaboration on a possible electricity connection via a submarine pipe which fits in with the creation of new electric power plants. The future energy landscape of Cyprus also awaits results of the research activities in the island’s Exclusive Economic Zone by ENI/KOGAS and Total both for gas and oil.

Source: Independent Balkan News Agency

- See more at: http://www.shippingherald.com/Admin/ArticleDetail/ArticleDetailsAnalysis/tabid/115/ArticleID/11676/Painting-the-new-Cypriot-energy-landscape.aspx#sthash.uVw6wazR.dpuf




SOURCE

Tuesday, August 6, 2013

Israeli gas group in talks on pipelines to Turkey, Jordan, Egypt | Reuters

Israeli gas group in talks on pipelines to Turkey, Jordan, Egypt

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JERUSALEM | Tue Aug 6, 2013 9:08am EDT
Aug 6 (Reuters) - A group of energy companies that discovered large amounts of natural gas off Israel's Mediterranean coast said they were in talks to export the gas to Europe via a pipeline to Turkey.
They are also studying options to export gas to Jordan, Egypt and the Palestinian Authority, Avner Oil & Gas said on Tuesday.
"The partners are negotiating with various officials," Avner, one of the partners in the project, said.
A spokesman for Delek Group, the parent company for Avner and for Delek Drilling, said the group - led by Noble Energy - was already in advanced talks with companies in Turkey, Jordan, Egypt and the Palestinian Authority about buying Israeli gas and building pipelines.
The talks show that the gas project is moving ahead, with prospects of eventually boosting Israel's export revenue and economic growth. They also indicate reduced tensions between Israel and Turkey. A pipeline could improve relations between the two countries, which have been poor since 2010.
Recoverable gas in the Levant Basin, which lies largely in Israeli and Cypriot waters in the eastern Mediterranean, hold some 3.5 trillion cubicmetres of gas, the U.S. Geological Survey has estimated.
That would meet all of Europe's gas demand for seven years and could mean exports of as much as 2 trillion cubic metres from Cyprus and Israel worth some $800 billion at current European gas prices.
Unresolved territorial disputes in the eastern Mediterranean regions, including Cyprus and Turkey as well as Israel and Lebanon, mean that it may be difficult to agree on a pipeline route to Turkey.
Analysts say the Israeli government wants an export terminal for liquefied natural gas (LNG) to be built in Israel, although most point out that a shared LNG facility in Cyprus may be commercially more attractive.
An export route to Turkey and into Europe could also cut into Russian sales of gas in the region.
ECONOMIC POTENTIAL
Prime Minister Benjamin Netanyahu estimated in June that the government would receive $60 billion in taxes and royalties from the sale of gas over the next two decades.
Deals could be signed soon depending on the outcome of a case before Israel's High Court over the amount of exports allowed, the Delek spokesman said.
Israel's economy is expected to grow 2.8 percent in 2013 but the start of gas production would add another one percentage point. The prospect of huge export revenues has helped to push the shekel to a two-year high versus the dollar.
The cabinet in June approved a plan to limit gas exports to about 40 percent of reserves, with Israel keeping the rest for domestic use.
Some lawmakers seek a higher share for the domestic market, while the Noble-Delek group prefer a larger allotment for exports, which they have said would encourage more exploration.
Two of the world's largest offshore fields found in the past decade lie in Israeli waters. Tamar, with an estimated 280 billion cubic metres, was discovered in 2009, and a year later Leviathan, was found with an estimated 530 bcm.
Tamar started production in March, while Leviathan is slated to come online in 2016 or 2017.
Israel already has a pipeline to Egypt, but it would need to build pipelines to Jordan, Turkey and the Palestinian Authority.
The Delek spokesman said there was also the possibility of exporting LNG to Asia where gas prices are much higher than in Europe, but that this option required a larger upfront investment due to the cost of building LNG terminals.

Should the consortium opt for pipelines, it could mean the end of a deal by Australia's Woodside Petroleum to buy into Leviathan. Woodside, Australia's biggest oil and gas company, last December agreed to buy 30 percent of the Leviathan prospect for $1.25 billion.



Link to article: http://www.reuters.com/article/2013/08/06/delek-natgas-exports-idUSL6N0G72F920130806

Israel's Zero Gas Game | Journal of Energy Security

Israel's Zero Gas Game

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When natural gas was first discovered off of Israel’s coast, analysts and pundits, myself included, identified the finds as a “geopolitical game changer.” Some even went as far as to refer to Israel as an emerging energy superpower – a Qatar in the making.  The country’s vibrant society was euphoric and consumed with speculation about how the windfall of natural gas revenues would be used and how natural gas exports to Asia, Europe and even to neighboring Turkey and Jordan might improve Israel’s strategic posture. Such discussions were not meritless. The natural gas discoveries, nearly 900 billion cubic meters, were among the world’s recent largest, and the involvement of a competent Houston-based company, Noble Energy, in the recovery process instilled confidence in the prospects of turning Israel into a non-trivial part of the global natural gas landscape. After six decades of total dependency on foreign sources of energy Israel was suddenly not only on the cusp of an era of energy self-sufficiency but also well on its way to becoming a net energy exporter and the proud owner of natural gas revenues and a  derived $100 billion sovereign wealth fund. This vision is drifting further away by the day. Israel has made all the right moves to squander its gas bonanza and scare off foreign investors to a point that the celebrated gas discoveries might turn into a huge missed opportunity.

Drilling for oil and gas in deep waters is the most risky endeavor in the energy industry. Doing so on a rig in the Eastern Mediterranean within the range of Hamas and Hizballah missiles is doubly risky. Working in Israel also carries a political price for companies vying to work in oil-rich Arab countries. No wonder international energy companies showed little enthusiasm for participating in exploration activities in Israel’s economic waters. But instead of giving the royal treatment to the few dare devils that did take the risk, Israel chose to give them a hard time.

Shortly after gas discoveries were made public in 2009, civil uproar began due to a sense that the public would not get its fair share of the revenues to come. Responding to pressure, in 2010 the government of Israel appointed a national commission to examine the royalty structure for oil and gas companies and to find ways to increase the public’s gain from the country’s natural resources. The following year, the commission recommended a repeal of the depreciation allowance and the introduction of a progressive tax between 20-60 % on oil and gas profits in addition to the existing 12.5%  royalty level. By international standards these were not draconian measures but changing the rules midgame had a chilling effect on energy companies considering to follow Noble Energy’s footsteps. After all, if rules can change once who is to say they won't change again?

It was only the beginning. A new controversy quickly emerged: how much of the gas should be reserved for the domestic market and how much should be allowed for export? The answer to this question would determine the willingness of companies to invest billions of dollars in developing the large 500 billion cubic meter (bcm) reservoir called Leviathan as well as in the infrastructure required to export the gas as LNG. The Israeli market is too small to absorb vast amounts of natural gas, and without a guaranteed market - which exports would provide - such an investment makes no sense. Thus a new governmental commission to determine the export allowance was formed. After a year of deliberations the commission decided to cap exports at 53%  of reserves, but succumbing to public pressure the cabinet reduced the figure to 40%.   This was not the end of it. The Israeli Supreme Court was inundated with appeals to repeal the cabinet decision, blocking exports altogether, and no resolution of the matter is in sight.
The international response was swift and painful. Australian energy giant Woodside Petroleum which had agreed to buy a 30% stake in the Leviathan project under the assumption that at least 50% of the natural gas would be allocated to exports got cold feet and held off on its $700 million payment. To make matters worse, in June 2013 Israel’s Minister of the Treasury Yair Lapid, under the influence of the social protests and the mounting pressure to identify new sources of income to balance the national budget, appointed yet another commission to reexamine – again – the public’s share in natural resources. The commission is scheduled to present its recommendations by June 2014, but its deliberations were postponed due to an appeal to the Israeli Supreme Court on the grounds of insufficient representation of women in it.

All these flip-flops, time delays and bureaucratic hurdles by consecutive Israeli governments seriously damaged Israel’s appeal as a target of investment in the eyes of the multi-trillion dollar energy industry. This would have been tolerable had Israel been the only player in the East Med theater. It isn’t. Cyprus, Lebanon and Turkey all have access to the same geological formation and with more gusto and decisiveness could overtake Israel in siphoning the gas, building infrastructure for export and locking-in long term supply contracts with gas importing countries. In fact, in spite of the economic basket case as it is, Cyprus has already signed deals with France’s Total, Italy’s Eni, South Korea’s Kogas and Noble Energy to explore the island’s new-found gas potential. After losing faith in Israel,  Woodside is considering joining a consortium to build an LNG export terminal there.

All this to say that Israel, the trigger for the East Med gas rush and the front-runner in its potential to bring gas to market, is rapidly losing its competitive edge, and its dreams of energy grandeur may soon evaporate. The combination of hyperactive, overly regulated democracy, an increasingly vocal green movement, and a socialistic streak in society preferring not to have natural gas revenues at all rather than see a few risk taking “tycoons” become richer, is proving fatal for the nascent Israeli energy industry.

While much damage has been done hope is not lost. Israel can still snap out of its bureaucratic paralysis, restore investors’ confidence and show the world it is open for business. In the coming months the government and the legislature must present a clear vision for the country’s energy sector, articulate the rights and responsibilities of foreign investors and trim down, rather than add, regulatory hurdles. Most importantly they should set rules and stick to them. Failure to do so will fizzle the Israeli gas dream. The gas will be left in the ground and the startup nation will be more worthy of the title ‘shutdown nation’.
Contributor Gal Luft is co-director of the Washington DC based Institute for the Analysis of Global Security (IAGS) and Senior Adviser to the United States Energy Security Council (USESC).


Link to article: http://www.ensec.org/index.php?option=com_content&view=article&id=455%3Aisraels-zero-gas-game&catid=137%3Aissue-content&Itemid=422