Greece, Cyprus and Israel to explain Med pipeline vision to EU | Reuters

Greece, Cyprus and Israel to explain Med pipeline vision to EU

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NICOSIA Dec 2 (Reuters) - Energy ministers of Greece, Cyprus and Israel will hold talks with the EU next week to try to advance a plan for a pipeline linking newly-discovered gas riches in the eastern Mediterranean to Europe, Cyprus's energy minister said on Tuesday.

Energy Minister Yiorgos Lakkotrypis told Reuters the three countries would put their case forward for a technical and feasibility study on building a pipeline through the Mediterranean westwards to Europe, tapping hydrocarbons discovered in the Levantine Basin.

They had asked for a meeting with Maros Sevcovic, the European Commissioner for energy union, Lakkotrypis said.

"The three ministers (of Greece, Israel and Cyprus) have co-signed a letter and asked for a meeting on Dec. 8, on the sidelines of the (energy) Council happening on the 9th," Lakkotrypis told Reuters.

Greece's Energy Minister Yannis Maniatis also said there would be announcements next week in Brussels.

"The project is absolutely feasible and viable," Maniatis said in a speech in Athens.

An EU official confirmed a meeting had been requested.

The EU has drawn up a list of priority projects considered to play a role in completing the EU energy union and they include infrastructure to ship eastern Mediterranean gas.

Israel has discovered huge offshore deposits of natural gas, while Cyprus, which lies to its west, has also reported one discovery. U.S. Noble Energy has a concession over one Cypriot offshore field as well as discoveries in Israel, and Italy's ENI now drilling in another area for gas.

Last week, Cyprus and Egypt discussed Cypriot reserves, including the possibility of piping them to Egypt.

This year's conflict between Russia and Ukraine, the transit route for roughly half the energy Russia supplies to the EU, has focused EU debate on energy security and diversifying supplies.

It has also driven Russia's quest for alternative shipment routes and it had planned a giant pipeline named South Stream to pump gas into southeastern Europe, bypassing Ukraine. The Commission, however, said the pipeline did not meet EU regulatory rules and on Monday, Russia announced it was scrapping the plan. (Reporting By Michele Kambas in Nicosia, Lefteris Papadimas in Athens andBarbara Lewis and Julia Fioretti in Brussels; editing by Susan Thomas)

Link to source: http://www.reuters.com/article/2014/12/02/eastmed-natgas-europe-idUSL6N0TM47J20141202

Israel sees ‘stars aligned’ for new gas pipeline to Europe | The Guardian

Israel sees ‘stars aligned’ for new gas pipeline to Europe

Israel, Cyprus and Greece seek European commission meeting to discuss major pipeline project in politically sensitive waters

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• Arthur Neslen, Brussels
• theguardian.com, Monday 1 December 2014 18.30 GMT

A rig in the Tamar gas field, located 90km west of the city of Haifa, northern Israel.Photograph: AP

Israel and Cyprus have launched a new push for EU funds to build a pipeline that could bring about 10 billion cubic metres (bcm) of their natural gas to Europe annually, and ease the continent’s energy security anxieties.

But Palestinians are warning that without a broader resolution of regional disputes, the pipeline risks becoming a source of conflict.

The Cyprus-centred project could be the world’s longest pipeline if built,stretching up to 1,530km, and passing through depths of up to 3,000m.

The Israeli energy minister, Silvan Shalom, raised the issue at a ministerial conference in Rome last week and held talks on the margins with the EU’s vice president for energy union, Maros Sefkovic, Israeli sources say.

Israel, Greece and Cyprus expect a formal meeting with Sefkovic to discuss ways of actualising the project, on the fringes of an EU energy ministers’ summit on 9 December.

“The three countries involved intend to raise this issue [on the 9th] as it involves funding from the commission,” an EU diplomat said. Israel, as a non-EU member, will depend on its partner countries’ powers of persuasion.

With energy diversification and security both rising up Europe’s political agenda, “it looks like the stars have aligned in one position now and that might be good for our timing,” Guy Feldman, an advisor to Shalom told the Guardian.

But the Palestinian Authority cautioned the EU against signing any contract until territorial gas disputes with neighbouring countries such as Lebanon were resolved.

“The objective of energy security starts with a clear cut boundary of all the gas fields,” said the PA’s energy minister, Omar Kettaneh. “Otherwise instead of being a source of security the pipeline will be a source of conflict.”

In 2010, the US Geological Survey (USGS) estimated that the Levant Basin, could hold more than 3,455bcm of gas, which is comparable to Iraq’s reserves.

But until now, political instability has hindered its exploitation, with Israeli and Cypriot claims to overlapping gas fields contested by Lebanon and Turkey, respectively.

In 2012, Israel, Cyprus and Greece signed a deal to promote exports of their gas to the EU through an eastern Mediterranean corridor.

The planned offshore pipeline, which diplomats say could transport between 8-15bcm of natural gas annually, has already been selected for “project of common interest” status by the EU. This potentially gives it access to a €5.85bn fund, and preferential treatment from multilateral banks.

“It is technically challenging and because of that it might be financially challenging,” Feldman said. “But Minister Shalom said in Rome that if the EU will lend a shoulder on the financing, it might be a feasible option,” Feldman said.

A commission timeline estimates that the pipeline could begin pumping gas by 2020, four years after the Leviathan field, which contains around 450bcm of gas comes online.

As well as Leviathan, the already operating Tamar field has proven reserves of 283bcm. Israel also has several smaller gas fields and is searching for more exploitable reserves. The country wants to export up to 60% of the gas it produces, Feldman said.

A commission spokesperson said that east Mediterranean gas finds such as Leviathan “could play a very important role in helping both producing and neighbouring countries to address their energy security problems. They could also have a growing role in the EU’s diversification strategy, contributing not only to the security of the region but to the entire EU.”

But Kettaneh said that such words rang hollow in Gaza, which has beenprevented from exploiting its own natural gas resources as a result of Israel’s blockade, and internal political divisions.

“It is ironic to talk about energy security for the EU when Gaza only enjoys five hours of daily electricity, and people are dying in hospitals because of a lack of electricity,” he said. “We should actually be talking about energy security for all.”

Link to source: http://www.theguardian.com/world/2014/dec/01/israel-sees-stars-aligned-for-new-gas-pipeline-to-europe