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.
However, those efforts could be impacted by a lower assessment from the Leviathan field, offering a more modest resource to work with.
According to the report, the new assessment was prepared by Netherlands-based SGS and offered a lower outlook than the previous 21.9 Tcf.
Israel is one of a handful of Eastern Mediterranean countries seeking to exploit the significant offshore gas discoveries that have become evident in recent years, including some level of involvement from Turkey, Greece, Cyprus, Lebanon and Egypt.
Just as Israel is discovering its offshore potential could be less than expected, Egypt has seen its fortunes change with the discovery of a “super giant” field by Italian energy giant Eni.
Once an exporter to countries like Jordan and Israel, Egypt saw production evaporate following the collapse of the long-standing government of Hosni Mubarak in 2011.
Faced with growing demand, the country struggled to address its energy needs. While still years away from developing its offshore discovery, the country is finding itself in a stronger energy position while Israel is facing a clearer picture of its natural gas potential.
According to the report, Israel’s government remains confident that it will still be able to meet its export plans, with one source telling Platts that deliveries could be feasible to Turkey, Egypt and possibly Europe, though reaching that far west could depend on significant investment in new transport lines or liquefied natural gas efforts.
As for the field’s current developers, the project partners remain confident in their earlier estimate, with production expected to begin in the next three to four years.
SOURCE
Faced with growing demand, the country struggled to address its energy needs. While still years away from developing its offshore discovery, the country is finding itself in a stronger energy position while Israel is facing a clearer picture of its natural gas potential.
According to the report, Israel’s government remains confident that it will still be able to meet its export plans, with one source telling Platts that deliveries could be feasible to Turkey, Egypt and possibly Europe, though reaching that far west could depend on significant investment in new transport lines or liquefied natural gas efforts.
As for the field’s current developers, the project partners remain confident in their earlier estimate, with production expected to begin in the next three to four years.
SOURCE
