EGAS scraps plan to increase domestic natgas production to 8 bcf this fiscal year - ENTERPRISE

Thursday, 6 February 2020

EGAS’ plan to increase domestic production of natural gas to 8 bcf/d in FY2019/2020 has been hindered by the global decline in the price of natural gas and the abundant supply for local consumption, sources from EGAS told Al Mal. 

The sources said that the inability to implement the plan is not due to technical, production or investment problems, but is linked to global and local changes. 

Global gas prices averaged USD 2.57/mmBtu last year, down from USD 3.15 over the past four years, and fell below USD 2 at the end of January.

Israel Electric set to sign new Tamar gas deal - GLOBES

23 Sep, 2019 18:26
Amiram Barkat

The gas price in the new agreement has been lowered to $4.30 per BTU for 18 months.

Israel Electric Corporation (IEC) is close to signing a new agreement with the owners of rights in the Tamar natural gas reservoir. The gas price in the new agreement has been lowered to $4.30 per BTU for 18 months, after which the agreement with IEC will be renegotiated. In effect, the agreement renews the competition between the Tamar and Leviathan reservoirs, because it enables IEC to buy gas from Tamar at a lower price than it obtained from Leviathan. The agreement is also an achievement for the Public Utilities Authority (Electricity), because it improves the terms in comparison with the previous agreement between IEC and Tamar, which the Public Utilities Authority refused to approve.

Leviathan won out over Tamar in a tender published by IEC for the purchase of variable quantities of gas beyond the minimum that it is obligated to buy from Tamar. The holders of rights in the two reservoirs offer the same price - $4.79 per BTU, but IEC management preferred Leviathan to Tamar.

Oil Majors See Huge Opportunity In Eastern Mediterranean - OIL PRICE / DRILLING INFO

Apr 20, 2017, 2:44 PM CDT
By Drilling Info

Quite suddenly, there is remarkable oil industry news to come out of the East Mediterranean region. If the plan is executed, in the space of seven years the balance of energy security in Western Europe will be radically changed. In geopolitical terms, this will be immense; when the planned Israel-Cyprus-Greece-Italy gas pipeline is built, European countries will be able to cut their ever-increasing dependence on Russian gas supplies.

The story of major gas discoveries in the East Mediterranean started in the shallow-water offshore Egypt, with Miocene Nile Delta discoveries progressively stepping out into deeper and deeper water. The first discovery was made by Phillips Petroleum in 1969, when it drilled the play-opening Abu Qir 1 NFW. It discovered gas in the Messinian Abu Madi sandstones. Subsequent exploration was led by the likes of AMOCO, BG, BP, Eni and Shell. There are now over 100 mainly gas and wet gas fields in the offshore Egyptian Nile Delta, with all production being piped onshore. The story continues to the present day, with recent large discoveries in the deeper Oligocene play, such as Salamat (2013) and Atoll (2015), alongside large Messinian discoveries including Nooros (2015) and Baltim South West (2016).

Best hope for Israeli gas - Turkey, not European market - TREND NEWS AGENCY

2 November 2016 11:10 (UTC+04:00)

Leman Zeynalova

The recent talks between Israel, Greece, Italy and Cyprus on Israeli gas export to Europe
are largely political talks, Charles Ellinas, oil market expert, former executive president at Cyprus National Hydrocarbons Company (CNHC) told Trend Nov.2.

Such a pipeline can become commercially viable if gas prices in Europe double, to over $8 per mmBTU, which is not likely to happen in the foreseeable future, said the expert.

Touching upon the possibility of building a pipeline from Israel to Turkey, Ellinas pointed out that this pipeline is priority and is also commercially viable.

The only obstacle is that it is has to go through Cyprus, which could be easier with solution of the Cyprus problem, he added.

However, the expert said that there is also some resistance to the construction of such a pipeline both in Israel and in Turkey.