Why A Junior Could Snatch This Cyprus Natural Gas Mega-Project - ValueWalk

Pierce Points / Dave Forest, June 4, 2016

Further to the second item above, the upcoming Cyprus bid round may be one of the best opportunities of the year — to build a new oil and gas empire.

When the tiny Mediterranean nation offers up its offshore acreage this summer, all eyes will be on the “usual suspects” in this part of the world. Namely, Italian major Eni — who operates the massive Zohr natgas discovery next-door in Egyptian waters. And others mid-tiers like Noble Group, who work nearby in the Israeli offshore.

And there could well be some surprises when it comes to bidders for the Cyprus licenses. Especially from Russian firms — with that nation having shown a surprising level of interest in the eastern Mediterranean energy scene. Don’t be surprised to see a Gazprom or Rosneft pop up in the mix.

Greece-Bulgaria gas pipeline seeks financing under EU plan - IN-CYPRUS.COM / CYPRUS WEEKLY

03/06/2016

A natural gas pipeline between Bulgaria and Greece will be eligible for financing under an EU investment scheme once it completes a market test of demand in September, Energy Minister Temenuzhka Petkova said on Friday.

Bulgaria and Greece signed last year a final investment decision to build the 182 km pipeline, important for Sofia’s efforts to cut its almost total dependence on Russian gas and boost supply security.

Bulgarian state-owned energy holding company BEH has 50 percent in the joint venture which will build the Interconnector Greece-Bulgaria, while Greek state energy firm DEPA and Italy’s Edison hold 25 percent each.

Greece plans to conclude DESFA deal with SOCAR by end of 2016 - TREND NEWS AGENCY

3 June 2016
Aygun Badalova, Baku, Azerbaijan

Greece plans to conclude the sale of its stake in natural gas grid operator DESFA to Azerbaijan's SOCAR by the end of the year, Reuters reported referring to Greece's energy minister Panos Skourletis.

The minister said that Greece, which signed a third international bailout last year, will get 188 million euros from the deal. Greece's biggest oil refiner Hellenic Petroleum, which also owns 35 percent in DESFA, will get the rest.

Israel approves development of large offshore Leviathan natgas field - REUTERS

Thu Jun 2, 2016 9:48am EDT

Israel's government on Thursday approved the development of the controversial Leviathan natural gas field that will give Israel a second source of gas supply while potentially turning it into a gas exporter.

Leviathan, one of the largest offshore discoveries of the past decade, was found off Israel's Mediterranean coast in 2010. It has an estimated 622 cubic meters of natural gas (BCM) of reserves and is expected to become operational in 2019.

Texas-based Noble Energy, which holds a 40 percent stake in Leviathan, said the field would initially start production at 1.2 billion cubic feet a day and expand to 2.1 bcf.

"Leviathan is expected to provide a second source of supply and entry point into Israel's domestic natural gas transport system, while also delivering exports to regional countries," Noble said in a statement.

The site, however, will cost at least $5 billion to develop and it was not yet clear how the project will be financed.

EC backs 'ending Cyprus' isolation' - NATURAL GAS EUROPE

East Med route (Map credit: Depa)

June 01st, 2016

“We want to make sure that Cyprus is much better connected, not only with its neighbours in the eastern Mediterranean, but also with the European Union,” Maros Sefcovic, the EU commissioner for Energy Union, told an event in Brussels last week at which he and Cyprus’s energy minister Yiorgios Lakkotrypis were panellists.

The latest EU list of Projects of Common Interests includes the ‘Euroasia Interconnector’ that would connect Israel, Cyprus, Crete and mainland Greece by a 1,518-km mostly subsea cable (400 kv, 2000 MW); and the 1,700-km East Med gas pipeline that would do broadly the same.

Bulgaria, Greece form task force to build Greek LNG terminal - KATHIMERINI

31.05.2016

Bulgarian state energy holding company BEH and Greek natural gas company Gastrade have set up a joint task force to prepare a proposal to build an off-shore liquefied natural gas (LNG) terminal in northern Greece, Gastrade said on Tuesday.

Greece currently has one LNG terminal on an islet off Athens and Gastrade, part of Greek energy group Copelouzos, is planning a second LNG terminal near the northern city of Alexandroupoli.

The task force will prepare and submit a proposal to the Bulgarian government for the best possible way to take part in the project, Gastrade said in a statement.

Israel in dilemma over LNG imports - NATURAL GAS EUROPE

May 30th, 2016

Israel Electric Corp. (IEC) has initiated a move to simplify LNG import procedures and lower the price, The Marker, a business daily reported. IEC is the only entity importing LNG, most of which it uses in its power plants, the remainder being sold on the market.

Israel has no onshore regasification facility. In 2011 Israel invested $150mn in an offshore buoy that can be connected to a floating storage and regasification unit (FSRU). However, each time the FSRU is emptied it has to leave Israeli waters and sail to Cyprus in order to be resupplied with LNG from an awaiting LNG cargo ship. That takes at least three days, during which period any major mishap in the natural gas systems has the potential to cause lengthy power outages.

Noble, Delek set to begin arbitration on Eran license - GLOBES

30/05/2016, Hedy Cohen

The government is in dispute with the gas exploration companies because the Tamar Southwest field extends into the license.

Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL) will begin arbitration proceedings with the Israeli government over the Eran license. The license was expropriated from the energy exploration companies more than two and a half years ago and the issue remains in dispute. The problem is that part of the Tamar Southwest field owned by the companies extends into the license. Noble Energy and Delek agreed to the arbitration more than a month ago and today Minister of National Infrastructures, Energy and Water Resources Yuval Steinitz agreed that the arbitration will be conducted by former Supreme Court President Asher Grunis.

A pro Russian politician o be confirmed Israel Defense Minister - NATURAL GAS EUROPE

May 30th, 2016

Avigdor Lieberman, an ultra-nationalist pro-Russian right-wing politician, is expected to be confirmed as Israel's next minister for defense, which could influence the development of Israel's gas industry.

Lieberman was born in Moldova when it was still a part of the Soviet Union and he speaks fluent Russian. He immigrated to Israel in 1978 at the age of 20. Following a short business career he became the director-general of the prime minister's office when Benjamin Netanyahu became prime minister for the first time, exactly 20 years ago this month.

He later resigned this post, established his own party and became foreign minister, a job he held for six years from 2009. From time to time he left politics and became involved in international trade particularly with eastern European and Eurasian regimes. His friendship with Vladimir Putin, the Russian president, is not a secret.

Israel settles gas saga - IN CYPRUS / CYPRUS WEEKLY

Charles Ellinas — 29/05/2016

Israel has finally settled the long-running saga of the gas regulatory framework agreement with the gas companies.

It has also reached a deal with Egypt to settle the dispute that has arisen after the decision by the International Arbitration Court to award a $1.73-billion compensation to Israeli Electric Corporation against Egypt’s EGAS for discontinuing gas supplies in 2012.
But these do not necessarily mean that Leviathan gas will now be exported to Egypt. Such a deal also needs signed commercial gas sales agreements.

Leviathan partners sign $3b gas deal - GLOBES

29/05/2016, 16:15

Hedy Cohen

Leviathan will supply 13 BCM over 18 years to the IPM power plant in Be'er Tuvia.

The partners in the Leviathan natural gas reservoir today announced the signing of a gas supply agreement with the IPM company in Be'er Tuvia. The partnership will supply 13 BCM of gas to the power station slated for construction in the Be'er Tuvia industrial zone. The value of the 18-year agreement is estimated at $3 billion. The contract is the second for the partners, following a contract with Edeltech, owned by the Edelsberg family, last January.