Israel Aims To Become An Energy Export Hub - OILPRICE.com / ZEROHEDGE.com

Jan 19, 2019, 2:00 PM CST

Israel has confirmed it is in extensive talks with Egypt to build a new sub-sea natural gas pipeline between the two countries as part of a previously agreed $15 billion deal to export Israeli gas to Egypt over a decade. Most significant is that the new line would hugely expand Israel's export capacity to its southern Arab neighbor, taking it far beyond the maximum 7 billion cubic meters per year currently able to flow through the existing EMG pipeline to Sinai. 

Israeli Energy Minister Yuval Steinitz proclaimed the ambitious project under negotiation to be part of broader "efforts to transform the eastern Mediterranean into an energy export hub on the doorstep of Europe," according to Bloomberg.

“There’s no final decision yet, but there are talks,” Steinitz told Bloomberg while attending the Cairo-sponsored first East Mediterranean Gas Forum, a cooperative forum aimed at expanding east Mediterranean energy transformation and joint ventures.

Cyprus: US to lift Cyprus arms embargo in security boost - THE REPUBLIC / AP

JAN/18/19 3:26 PM
Menelaos Hadjicostis

NICOSIA, Cyprus — The U.S. will soon start lifting a decades-old arms embargo on Cyprus because Washington acknowledges the Mediterranean island nation’s contribution to bolstering regional stability and security, the Cypriot foreign minister said Friday.

Foreign Minister Nikos Christodoulides said that Washington sees the “added value” of allowing Cyprus to acquire military equipment that would help enhance its capabilities to boost regional security.

The embargo was imposed in 1987 with the aim of preventing an arms buildup that would hamper diplomatic efforts to reunify divided Cyprus. The island was split along ethnic lines in 1974 when Turkey invaded in the wake of a coup aimed at union with Greece.

Christodoulides said the process to lift the embargo has been set in motion in the U.S. Congress, reflecting a “positive shift” in that Washington no longer views Cyprus solely as an unsettled conflict of ethnic division.

“This is proof, if you like, of the recognition by the U.S. administration of the positive role that Cyprus plays as a pillar of stability and security in the broader region,” Christodoulides told The Associated Press.

In First, Arab Countries Admit Israel Into a Regional Alliance. But There Is a Price - HAARETZ

Jan 17, 2019 2:05 PM
Ora Coren 

The announcement this week that many of the countries of the East Mediterranean, including Israel, agreed to set up a forum to create a regional gas market is a landmark development for Israel. It not only creates a framework for developing the region’s energy, but it marks the first time Israel has been admitted to a regional grouping that will give it official status in the Arab world.

The Eastern Mediterranean Gas Forum, announced on Monday after a meeting in Cairo, aims to “create a regional gas market that serves the interests of its members by ensuring supply and demand, optimizing resource development, rationalizing the cost of infrastructure, offering competitive prices and improving trade relations, among other goals,” Egypt’s Petroleum Ministry announced.

Besides Israel, the group includes Egypt, Cyprus, Greece, Italy, Jordan and the Palestinian Authority. The statement said that other Eastern Mediterranean countries may join the forum later, a hint that Lebanon may become a member.

Energean Oil & Gas sets sights on production growth, looks forward to 2019 drill programmes - PROACTIVE INVESTORS

16 Jan 2019, 08:37 

Energean Oil & Gas PLC (LON:ENOG), in a statement ahead of its full year results, told investors it increased revenues by 56% during 2018;

The company noted that, in Greece, it produced 4,053 bopd and that falls within the expected range of 4,000 to 4,250 bopd. Guidance for 2019 pitches production expectations at 5,000 to 6,000 bopd in Greece.

Meanwhile, Energean continues to advance the Karish and Tanin projects in Israel for ‘first gas’ in the first quarter of 2021.

This year, the company aims to expand the assets with the drill-bit. It plans to target some 2.3 trillion cubic feet of potential gas resources through the 2019 drill programmes.

"2018 was a very successful year for Energean. We increased revenues by 56% while reducing cost of production by 29%, made significant progress on our development projects and converted significant volumes of resources into reserves,” said Mathios Rigas, Energean chief executive.

Talks Underway to Build New Gas Pipeline to Egypt, Israel Says - BLOOMBERG

January 15, 2019, 2:20 PM GMT+2 

Mirette Magdy

• Israeli energy minister spoke in Cairo after gas forum
• East Med countries building gas export network to Europe

Talks are in progress to build a new underwater gas pipeline between Israel and Egypt, part of efforts to transform the eastern Mediterranean into an energy export hub on Europe’s doorstep, Israeli Energy Minister Yuval Steinitz said. Israeli gas stocks rose.

Construction could begin as early as next year on the pipe to transport gas from Israel’s offshore Leviathan and Tamar fields to Egypt’s existing liquefied natural gas plants for processing and re-export, Steinitz said.

The new line would allow Israel to export much more to Egypt than the maximum 7 billion cubic meters per year that can flow through the existing EMG pipeline connecting southern Israel to Egypt’s Sinai peninsula.

“There’s no final decision yet, but there are talks,” Steinitz told Bloomberg in an interview in Cairo, where he took part in the first East Mediterranean Gas Forum. The event was aimed at boosting cooperation among the region’s nascent gas producers, consumers and transit countries. The next meeting will take place in April.

East Med gas players vow to establish regional market, choose Cairo as HQ for new organization - ENTERPRISE

Tuesday, 15 January 2019

East Med gas players vow to establish regional market, choose Cairo as HQ for new organization: East Mediterranean gas producers will establish a regional gas market following an agreement in Cairo yesterday at what’s being billed as the first meeting of the East Med Gas Forum, according to an Oil Ministry statement. The forum agreed to “create a regional gas market that serves the interests of its members by ensuring supply and demand, optimizing resource development, rationalizing the cost of infrastructure, offering competitive prices and improving trade relations,” Reuters reports.

Who’s on board? The meeting was attended by representatives from seven countries including Israel, Cyprus, Greece, Italy, Jordan, Palestine and Egypt.

It’s not clear precisely what “regional gas market” means: Prior to the meeting, an anonymous source at the ministry said that countries would discuss ways to increase Egypt’s role as the region’s primary LNG exporter. However, the ministry’s statement does not elaborate on how yesterday’s agreement fits with the country’s gas hub ambitions. We’re also remain none the wiser on the shape the regional market could take or what steps the organization will take to get there.

Eastern Mediterranean countries to form regional gas market - REUTERS

JANUARY 14, 2019 / 3:21 PM

CAIRO (Reuters) - Eastern Mediterranean countries meeting in Cairo agreed to set up a forum to create a regional gas market, cut infrastructure costs and offer competitive prices, Egypt’s petroleum ministry said on Monday.

The organization aims to “create a regional gas market that serves the interests of its members by ensuring supply and demand, optimizing resource development, rationalizing the cost of infrastructure, offering competitive prices and improving trade relations,” among other goals, the statement said.

The announcement is part of efforts to transform the Eastern Mediterranean into a major energy hub.

The others involved are Cyprus, Greece, Israel, Italy, Jordan and the Palestinians. Other Eastern Mediterranean countries and transitory countries may join the forum later, the ministry said in a statement.

The Eastern Mediterranean Gas Forum will be based in Cairo and will be open to monitoring by international and regional organizations.

Israel will begin exporting gas to Egypt in a few months' time - energy minister - REUTERS

JANUARY 14, 2019 / 6:02 PM

CAIRO, Jan 14 (Reuters) - Israel will begin exporting natural gas to Egypt “in a few months’ time”, Israeli energy minister Yuval Steinitz said on Monday.

Steinitz did not give a specific target for initial exports, but said shipments will double after the huge Leviathan field in the eastern Mediterranean comes fully online in November.

As well as Leviathan, two smaller fields are expected to come online in the next few years. Steinitz said Israeli exports to Egypt were expected to reach 7 billion cubic meters annually over 10 years.

Steinitz was speaking on the sidelines of a regional gas forum in Cairo, where he said Israel and Egypt had discussed how to extend cooperation on natural gas, including through exports. .

Egypt is hoping to leverage its strategic location straddling the Suez Canal, its land bridge between Asia and Africa and its well-developed infrastructure to become a key trading and distribution centre in the region and beyond.

Egypt, Jordan amend natgas supply agreements as El Sisi visits Amman - ENTERPRISE

Monday, 14 January 2019

Egypt, Jordan amend natgas supply agreements: Oil Minister Tarek El Molla and his Jordanian counterpart Hala Zawati signed agreements amending prior natural gas purchase and sale agreements and MoUs, according to Al Shorouk. No details were provided as to what the amendments entail. Egypt began exporting natural gas to Jordan last September under a supply resumption agreement providing as much as 10% of Amman’s natural gas needs. Zawati later said her country is planning to increase the amount to eventually cover a third of the kingdom’s demand.

This comes as President Abdel Fattah El Sisi held talks yesterday with Jordan’s King Abdullah II during a short visit to Amman, according to an Ittihadiya statement. The two discussed natural gas exports to Jordan and the Palestinian peace process, as well as bilateral ties, countering terrorism, Syria, Libya, and Yemen.

Egypt in talks with UGS to drop USD 2 bn arbitration claim over Damietta liquefaction plant - ENTERPRISE

Sunday, 13 January 2019

Egypt is in talks with Spanish-Italian JV Union Fenosa Gas (UGS) in a bid to have the European outfit drop its arbitration claim over gas supply interruptions at the Damietta liquefaction plant, an industry source tells the domestic press. The World Bank’s International Centre for Settlement of Investment Disputes ordered in September that Egypt pay USD 2 bn to UGS in the case, which UGS filed after the state cut off flows to its Damietta liquefaction plant. UGS owns 80% of the facility, while state-owned EGPC and EGAS together own the remaining 20%. According to the sources, the Oil Ministry is looking to hammer out an agreement that would see Egypt gradually relaunch operations at the Damietta facility and compensate UGS for its losses through EGAS’ profits from the facility’s operations. Naturgy and Eni are in “advanced talks” over the relaunch of operations, Eni CFO Massimo Mondazzi said back in October.

Government seeks to transform Egypt into regional energy hub benefiting from sector growth - DAILY NEWS EGYPT

13.01.2019Ahmed Lamloum

The oil and gas sector has been a pillar to the Egyptian economy in the last few years, contributing about 15% to the GDP, especially after the 2011 uprising negatively affected the tourism and investment sectors, drying up foreign currency reserves.

The Executive Vice President of Operations at Egyptian Natural Gas Holding Company (EGAS), Magdy Galal, opened on Sunday the Egypt Energy Hub 2019 conference on behalf of Tarek El-Molla, the minster of petroleum and mineral resources, and delivered the opening speech.

Galal highlighted the importance of adopting the required technological elements that can give a real push to the energy sector.

He stressed the government’s keenness to transform Egypt into a regional oil and gas hub, benefiting from the recent discoveries in the Mediterranean and the Nile Delta.