Saturday, April 30, 2016

New Estimate Lowers Offshore Potential at Israel's Leviathan - FORBES

APR 30, 2016
Christopher Coats , CONTRIBUTOR

A new estimate of Israel’s offshore Leviathan field shows a far more conservative outlook for the country’s natural gas potential, possibly eating away at the country’s export plans.

According to a Platts report, the new estimate reduces a previous assessment of the field’s potential by almost a quarter to 16.6 Tcf, threatening to reshape the country’s plans for moving natural gas beyond its own borders.

Israel has previously established allowable amounts of natural gas to be exported from the country’s offshore efforts, establishing a minimum for domestic use. Since then, the country has worked to establish potential new trade partnerships with regional neighbors and possible links with the broader European market.

At the same time, Europe has looked to explore potential new import efforts with Eastern Mediterranean producers like Israel as it hopes to reduce its current dependence on Russian natural gas.

Friday, April 29, 2016

US diplomat urges Israel to resolve the deadlock in gas industry - NATURAL GAS EUROPE

April 29th, 2016

Amos Hochstein, a senior US state department official and special envoy on energy issues, said Israel's regulations were deterring energy companies. In an interview with Calcalist, a business daily, Hochstein said that energy companies prefer investing in Egypt over Israel and urged Israeli politicians and regulators to solve the deadlock in Israel's energy sector since the High Court of Justice rejected the stability clause in the natural gas regulatory framework late March.

"Stable regulation is a must and it doesn’t matter how, but it has to happen fast," Hochstein said. "It is a subject that came up in the past in my talks with the Prime Minister, Benjamin Netanyahu."

Thursday, April 28, 2016

Energy across the Mediterranean: a call for realism - BRUEGEL

After almost two decades of unproductive regional cooperation attempts, the EU should reshape its energy cooperation efforts in the Mediterranean through new bilateral approaches

BY: SIMONE TAGLIAPIETRA AND GEORG ZACHMANN DATE: APRIL 28, 2016

The issue

This paper was produced within the framework of the Bruegel- OCP PC joint conference.

Political instability in the southern Mediterranean countries have highlighted the unsustainability of their economic models. Widespread economic discontent, and in particular very high youth unemployment, underpinned the Arab Spring uprisings. As the refugee crisis shows, this is also Europe’s problem and Euro-Mediterranean economic cooperation needs to be reviewed. Energy is a key part of the cooperation framework.

Wednesday, April 27, 2016

RPT-UPDATE 1-Genel courts Turkey with Kurdish gas to reduce reliance on Russia - REUTERS

Apr 27, 2016
  • Genel in talks with Turkish state-backed firm on stake in fields
  • Deal would help Turkey diversify supplies after Russian dispute
  • Could help Genel and Chairman Hayward regain investor confidence (Recasts, adds details, background)
By Ron Bousso

LONDON, April 27 Genel Energy, chaired by former BP head Tony Hayward, is betting on a major deal with Turkey to jointly develop gas fields in Iraqi Kurdistan which will help Ankara reduce its reliance on Russian supplies after relations soured with Moscow.

The deal, if it goes through, could help London-listed Genel regain investor confidence after it steeply downgraded its oil reserves two months ago - leading to it losing a third of its market value, contributing to its biggest-ever annual loss and piling pressure on Hayward.

Tuesday, April 26, 2016

Italy's Eni to build natural gas processing plant in Egypt's Port Said - AMWAL ALGHAD / ZAWYA

Apr 26 2016
By Mahmoud Shaaban

Italian energy giant Eni received 400 feddans in Port Said governorate to establish a plant for processing natural gas of Zhor field, Egyptian petroleum minister Tarek El-Molla stated Monday.

Speaking to Amwal Al Ghad, El-Molla said that Eni is continuing drilling works in petroleum wells affiliate to Zohr gas field in Mediterranean Sea.

He added that production processes at Zohr field are set to start during 2017 with initial volume of one billion cubic feet gas per day. Hence, Egypt's production rates of natural gas will be improved within the upcoming years . Additionally, Egyptian imports of natural gas will be lowered, the minister pointed out.

Monday, April 25, 2016

EU looking towards East Med gas reserves - CYPRUS MAIL

Jakub Adamowicz, European Commission Spokesperson
for Transport and Regional Policy
APRIL 25TH, 2016

Eastern Mediterranean gas reserves, including Cyprus’, could play a significant part in addressing the European Union’s drive for energy diversification, the European Commission reiterated on Monday.

During a press briefing in Brussels, Jakub Adamowicz, European Commission Spokesperson for Transport and Regional Policy, was asked how the gas fields located between Israel and Cyprus fit into the wider EU Energy Union scheme.

“The East Mediterranean gas findings could play a very important role helping both producing and neighbouring countries to address their energy security problems. They could also have a growing role in the EU diversification strategy,” Adamowicz said.

He added however that it was too early to assess the impact of those gas finds on the EU gas market.

Edison and EGPC ink deal to develop second phase of Abu Qir gas field - ENERGY EGYPT / MUBASHER

April 25, 2016

Egypt’s General Petroleum Corporation signed an agreement with Electricité de France (EDF Group), owner of Italy’s Edison Company, to develop the second phase of Abu Qir Gas Project.

The signing of the $220 million worth agreement was attended by Tarek al Molla, Minister of Petroleum and Mineral Resources in Cairo on Saturday.

The deal involves a daily production rate estimated at 150 million cubic feet of gas and 6,000 barrels of crude oil and condensate, according to al Molla.

Abu Qir was the first gas field developed in the Egyptian Mediterranean.

Since 1979, it has served the domestic market’s growing demand for gas.

Russia drives Turkey into arms of EU, Ukraine: Think-tank - NATURAL GAS EUROPE

April 25th, 2016

Turkey is moving ahead this year with renewed urgency to develop a hub, as a means of defending itself from Russia's pricing tactics.

What is perceived as the main obstacle, Botas’ dominance, is unimportant, argues former Botas expert and now director of Ankara think-tank Eppen, Dr Volkan Ozdemir. In an interview with NGE which also covered Russian pipelines and the southern gas corridor, he compared Botas’ 75%-80% in Turkey with GasTerra’s similarly dominant position in the Netherlands – home to the Title Transfer Facility, the continent’s most liquid hub.

Private companies can import spot LNG into Turkey through a privately-owned terminal; and the gas release program means that private importers supply 10bn m³/yr.

The Turkish balancing point is small; but last month a contract traded for gas for delivery over the balance of the month at the EPIAS energy exchange. EPIAS was set up as part of the Istanbul stock exchange and the government has a good reason now to encourage the development of a domestic hub, he says.

Sunday, April 24, 2016

Only two options for Cyprus gas: Turkey or FLNG - IN CYPRUS / CYPRUS WEEKLY

24/04/2016
By George Telaveris

The government has received the draft gas field development plan for the Aphrodite field in Block 12 from Noble Energy and its partners, but it is now an open secret that unless Cyprus clinches a deal with a potential buyer, the plan will remain on paper.

Negotiations to sell part of the estimated 4.54 trillion cubic feet (tcf) in Block 12 to Egypt were seriously undermined following the discovery of the Zohr supergiant gas field by Eni in Egyptian waters last August.

“Selling gas for domestic consumption in Egypt is not really a possibility for Cyprus, as Egypt will be able to cover its needs by 2020,” hydrocarbons business consultant Charles Ellinas told the Cyprus Weekly.

The gas find in Zohr is estimated at 30 tcf or 850 billion cubic metres. All of it will be allocated to cover the Egyptian domestic market.

Report: Russia wants share in Israeli gas - JERUSALEM POST / GLOBES

Netanyahu and Putin. (photo credit:IVAN SEKRETAREV / POOL / AFP)
By HEDY COHEN/GLOBES \ 04/24/2016

Gazprom's interest in Israeli gas reservoir Leviathan is a strategic issue for Russian President Vladimir Putin.

The Russian press reported at the end of last week that Russia was seeking to enter the Israeli natural gas industry, following a meeting in Russia last Thursday between Russian President Vladimir Putin and Prime Minister Benjamin Netanyahu.

It is believed that Putin wants to take part in the development of the Leviathan gas reservoir. This was not the first time that Russia has tried to strengthen its foothold in the Middle East through control of gas reservoirs. In February 2013, Gazprom, the Russian state-controlled (50.1%, with 49.9% owned by private and other investors) national gas company, signed a memorandum of understanding to buy gas produced from the Tamar reservoir through a floating liquefied natural gas (FLNG) facility. Gazprom agreed to buy three million tons of LNG a year, amounting to 4.1 BCM. The project was never implemented, among other things because the Minister of National Infrastructure, Energy, and Water Resources never approved the export project.