Gas for Peace - FOREIGN POLICY

MAY 28, 2019, 8:52 PM

MICHA'EL TANCHUM

A virtual gas hub could create real cooperation in the Eastern Mediterranean.

The strategic equilibrium that has kept the Eastern Mediterranean relatively calm for the past few years may be about to tip. On May 3, Turkey announced that it would commence natural gas drilling operations off the southern coast of Cyprus, in the exclusive economic zone claimed by the internationally recognized government in Greek-dominated south Cyprus. Ankara argues that it is defending the rights of Turkish Cypriots in the northern half of the ethnically divided island who are the legal co-owners of the island’s natural gas but are precluded from participating in its development. On May 12, Turkey doubled down and announced that it would send a second drill ship into Cypriot waters.

Turkey’s brinkmanship comes in response to attempts by Egypt, Greece, Cyprus, and Israel to create a regional energy architecture that will exclude Turkey from the marketing of Eastern Mediterranean natural gas. For example, in 2017 and early 2018, Egypt and Cyprus were in talks about a deal to sell gas from the Eastern Mediterranean to Europe using Egypt’s liquified natural gas plants—which would ensure that the region’s offshore gas bypasses Turkey’s pipelines en route to European Union markets. In February 2018, the Italian energy giant Eni, which in 2015 had discovered Egypt’s massive Zohr natural gas field adjacent to Cypriot territorial waters, announced a significant gas find in Cyprus’s nearby Calypso field.

TEKMOR Note: A virtual hub is a great idea. The most logical place for such a hub is Cyprus indeed. However, placing it in a stretch of land that symbolizes Turkey's invasion, ethnic cleansing & division amounts to nothing less than a Chamberlainian move to appease the beast (not that it would be enough either); the author might as well propose to allow Turkey to get just half the F-35s along with the Russian S-400s. More courageous actions are needed to defend western interests which clearly lie along the Israel, Egypt, Cyprus, Greece axis. 

New pipeline will weaken Turkish-Israeli relationship - ASIA TIMES

JANUARY 12, 2019 12:35 AM (UTC+8)

Joseph Dana

The relationship between Turkey and Israel has never been an easy one to understand. Since formal relations crystalized in 1949, with Turkey becoming one of the first Muslim-majority countries to recognize Israel, both countries have found themselves at arm’s length with the rest of the Middle East.

By the time Israel sent medics to assist victims of Turkey’s tragic earthquake in 1999, the two countries were sharing military technology and bilateral trade was booming. The relationship then took a sour turn, at least rhetorically. A war of words between Turkish President Recep Tayyip Erdogan and Israeli Prime Minister Benjamin Netanyahu reached a fever pitch over the last decade and seemingly threatened the foundations of this unique partnership.

Many observers, however, believed the alliance was never really at risk, due to the sheer amount of trade that moves between the two countries.

But now, all that has changed. The discovery of massive natural gas fields off Israel’s northern coast more than a decade ago and subsequent attempts to export this gas to Europe have highlighted the true fault lines in the Turkish-Israeli alliance. Recent events reveal that a fundamental shift in the alliance is undeniably underway.

Geopolitics: How an energy-friendly future will bolster the region - THE JERUSALEM POST

November 17, 2018 00:37
Eytan Halon

National Infrastructure, Energy and Water Minister and security cabinet member Yuval Steinitz has held a wide range of senior ministerial and Knesset committee positions during nearly two decades in Israel’s parliament. Yet overseeing what can only be described as a revolution in Israel’s energy sector since 2015 might prove to be his most memorable task.

Until major discoveries of natural gas off Israel’s coastline in recent years, few would have dreamed of natural resource-poor Israel supplying former adversaries Jordan and Egypt with natural gas valued at $26 billion.

With ambitious plans to construct a 2,000-kilometer pipeline to supply eastern Mediterranean gas to Europe, and with scientific predictions of additional vast natural gas fields still to be discovered in the Levantine Basin, Israel’s unexpected gas boom to date may be only the tip of its national energy iceberg.

Energy supply and dependence, particularly Arab oil, has always had an important impact on diplomatic relations worldwide. Now, for the first time, Israel is enjoying the fruits of its role as an energy supplier, both domestically and abroad.

Speaking to The Jerusalem Post in early November ahead of his appearance at the Post’s Diplomatic Conference on November 21, Steinitz, who worked as a University of Haifa lecturer in philosophy prior to entering politics, spoke not of theorems or logic but of his vision for Israel’s energy future.

Palestinians in talks with int'l co to develop Marine gas field - GLOBES

21 Jun, 2018 20:16
Amiram Barkat and Sonia Gorodeisky

The gas produced from the reservoir will be used to operate the power station in Gaza and another 450-megawatt power station to be built in Jenin.

Almost 20 years after it was discovered, the Palestinian Authority (PA) will try to develop the Gaza Marine natural gas reservoir located off the coast of the Gaza Strip by itself, sources inform "Globes." In the past, the PA asked Israel for the use of the state's gas transmission infrastructure, and the matter is currently being discussed. The sources add that the owners of the rights in the reservoir are negotiating with an international drilling operator to develop and operate the reservoir.

According to the plan, the gas produced from the reservoir will be used to operate the power station in the Gaza Strip and another 450-megawatt power station slated for construction in the Jenin area. In addition to local consumption, the Palestinians are trying to find customers for their gas in the region in order to reach a minimum amount of demand for gas that will justify development of the reservoir. Costs of developing gas reservoirs have recently fallen, thereby making it easier to carry out plans.

Jordan is Key Player in Israel's Energy Equation in Region - ALBAWABA NEWS

May 17th, 2018 - 18:00 GMT

Jordan is a key player in Israel's energy equation in the region as it could either make or break the Jordan-Israeli gas sales and purchase agreement that is vital to Israel's success as a regional energy player, according to the director of hydrocarbons at the Paris-based Mediterranean Energy Observatory (OME).

In September 2016, U.S.' Noble Energy, the operator of Israel's Leviathan gas field, signed a gas sales and purchase agreement with Jordan's National Electric Power Company Ltd. (NEPCO) to sell approximately three billion cubic meters of natural gas over a 15-year term.

"If Jordan cancels the gas deal signed with Israel following Israel's brutality in the Gaza Strip, there is no place for its gas to go, therefore, Israel can suffer huge losses in terms of energy income," Director Sohbet Karbuz told Anadolu Agency in an exclusive interview.

The deal in September 2016 was agreed despite widespread disapproval in Jordan for the purchase of Israel's energy. The past two years saw a number of popular demonstrations in Jordan's capital Amman against the proposed import of gas from the Jewish state.

Karbuz explained that Jordan is the most important market that these companies rely on to recover the billions of dollars of investments that these companies have made.

Shell relinquishes Gaza gas field rights - GLOBES

8 Mar, 2018 13:50
Sonia Gorodeisky

The Palestinian Authority is seeking a new partner to help it develop the Marine gas field.

Energy giant Royal Dutch Shell is relinquishing its rights to the Marine gas field off the coast of Gaza, "Reuters" reports. The undeveloped gas field contains an estimated 32 billion cubic meters of natural gas.

The Palestinian Authority now needs to find a new international group to develop and operate the field. Palestinian ministers say they are in the process of locating an alternative operator to Shell.

Shell owns 60% of the rights to the gas field with the Palestinian Authority owning the remaining 40%. British Gas (since acquired by Shell) discovered the field, 35 kilometers off the coast of Gaza, in 2000 but although it could have provided energy security for the Gaza Strip, the field has never been developed. The main reason for the failure to develop the field was the geopolitical problems in the region, which made it impossible for Shell to sign any export deals.

A Shell spokesman said: "We confirm we have been in discussions with various parties about the future of the Gaza Marine project. As of now, Shell continues to hold its equity in the Gaza Marine asset."

Shell's Gaza Gas Field Sale Hits Problems - HART ENERGY / REUTERS

Friday, January 12, 2018 - 12:20pm

It may prove to be Royal Dutch Shell Plc's (NYSE: RDS.A) hardest sell. The Anglo-Dutch group is struggling to find a buyer for its gas field off the Gaza Strip, even among energy companies long used to dealing with projects fraught with political and security risks.

At least one European company has shown interest in the undeveloped Gaza Marine Field following a reconciliation deal in October between the two rival Palestinian factions, a source involved in the talks said.

But the firm's discussions over the field, located about 30 km (20 miles) off the Gaza coast, have ground to a halt since tensions in the wider region have taken a fresh turn for the worse, the source told Reuters.

"Until the political situation is resolved I really can't see anything happening here," he said.

Gaza Marine has long been seen as a golden opportunity for the cash-strapped Palestinian Authority to join the Mediterranean gas bonanza, providing a major source of income to reduce its reliance on foreign aid.

Troubled waters - EXECUTIVE MAGAZINE

May 15, 2017

Matt Nash

From a technical standpoint, the East Mediterranean is a challenge because the seabed is generally more than one thousand meters below the surface. Ultra-deep water, in industry parlance. From a geopolitical standpoint, the complexity is arguably even greater.

Many problems among a variety of neighbors

Production of East Med gas began in Egypt in the late 1960s. Activity remained localized for over thirty years until discoveries were made off Israel and the Gaza Strip in 1999 and 2000. For political reasons, the relatively small Gaza find remains undeveloped, while exploration continued apace offshore Israel, resulting in discoveries – namely Tamar in 2009 and Leviathan in 2010 (see map below) – that have helped spark intense interest in the so-called Levantine Basin, a subsea structure shared by Lebanon, Israel, the Palestinian Authority, Syria, Cyprus, and Turkey, at least from Turkey’s perspective. In 2012, Cyprus was elated by news of the Aphrodite discovery, but for all the gas Israel and Cyprus have found, not a molecule has yet been exported. In fact, most of the gas (including everything in Tamar, Leviathan and Aphrodite) remains buried for lack of a clear means to move it out of the region, among other reasons.

Mediterranean sea, from gas new opportunities for integration - ABO

Jan 17, 2017
Costanza Concetti, Georgetown University

The new found hydrocarbon resources in the Mediterranean may represent the pretext for long-awaited regional integration
With Eni’s discovery offshore Egypt of the Zohr Field, whose 850 bcm of lean gas make it the largest gas trove in the Mediterranean to date, the Eastern Mediterranean has officially become a viable supply basin for the needs of gas-hungry Europe. The collective 3,500 bcm of natural gas reserves found offshore Cyprus, Lebanon, Israel, Gaza, and Egypt, and a predicted 10,000 bcm more lying in the ground, will predictably challenge the previous monopoly held by current suppliers like Russia, Algeria, and Nigeria. Contemporarily, as previous historical importers set out to become natural gas exporters, neighboring countries that harbored frosty relationships are already being brought together in the interest of effectively exporting and marketing the newfound resources. The Eastern Mediterranean gas reserves and their export may therefore transform the geopolitics of energy that currently connect Europe, Russia, Turkey, the Middle East, and the African continent in a complex web of interdependencies.

Gas pipeline hope heals rupture in Israel-Turkey ties - BBC

TUR Energy Minister Berat Albayrak (R) and ISR Energy Minister
Yuval Steinitz (L) meet at 23rd World Energy Congress (AFP)

By Selin Girit, BBC News, Istanbul, 19 October 2016

Israel is looking to transfer natural gas from its offshore fields to markets as far away as Europe

All the painstaking efforts aimed at mending Turkish-Israeli relations are finally paying off, six years after they broke off in acrimony.

Last week, Yuval Steinitz became the first Israeli minister to visit Turkey since 2010, for talks with his Turkish counterpart, Energy Minister Berat Albayrak.

The visit signalled a significant turning-point in relations as they agreed to deepen co-operation and discussed the possibility of building a natural gas pipeline from Israel to Turkey.

Israel, Turkey deepen energy ties as relations resume after 6-yr rupture - REUTERS

Thu Oct 13, 2016 | 10:06am EDT

By Can Sezer, Additional Reporting by Tulay Karadeniz in Ankara; Writing by Ece Toksabay; Editing by Nick Tattersall

Israel and Turkey agreed to deepen cooperation in the energy sector on Thursday, taking a further step towards normalizing ties with the first Israeli ministerial visit to Turkey since a breakdown six years ago.

Israeli Energy Minister Yuval Steinitz said he would welcome more involvement by Turkish firms in the Israeli energy sector, particularly in gas exploration, and said "detailed dialogue" between the two governments would begin in the coming months.

After meeting in Istanbul with his Turkish counterpart Berat Albayrak, who is President Tayyip Erdogan's son-in-law, Steinitz said the two had discussed the possibility of building a natural gas pipeline from Israel to Turkey.

Israel Should Avoid Turkey, Include Cyprus in Gas Export Projects - IMRA / BESA CENTER

Saturday, October 8, 2016, By Ariel Ben Solomon

Published originally as 'Israel Should Avoid Turkey, Include Cyprus in Gas Export Projects' on October 7, 2016 in BESA Center Perspectives Paper No. 370 

EXECUTIVE SUMMARY: Israel should rule out building a natural gas pipeline to Islamist Turkey because of the political risk involved. It should instead consider using LNG technology for export through Cyprus. Although this would be expensive, it would be a less risky and more durable option over the long term. This should be in addition to exporting to Jordan and possibly to Egypt.

As Israel begins closing deals for its natural gas, it should avoid linking itself to any expensive long-term pipeline deal with Turkey at the expense of allies Cyprus, Greece, or even Egypt. 

Notwithstanding the recent easing of tensions between the two countries, Israel cannot trust Turkish President Recep Tayyip Erdogan’s Islamist regime as a linchpin in its natural gas export strategy.

The Israel-Egypt partnership deepens - THE HILL

August 05, 2016, 02:26 pm
By Oren Kessler, contributor

Egypt last week marked Revolution Day, the day commemorating the 1952 Free Officers' revolt that toppled the playboy King Farouk. Next door in Israel, the Egyptian embassy threw a party.

Israel's Prime Minister Benjamin Netanyahu and his wife attended, as did its president. Flags of both nations flew; anthems of both were sung. Balloons in the Egyptian colors were strewn over the embassy pool, and a woman dressed like Cleopatra delivered remarks. It was the first time in six years that Egypt's embassy in Tel Aviv publicly marked the event.

It was an extraordinary gesture, and these are extraordinary times in the relationship between two of Washington's keystone allies in the Eastern Mediterranean. Two weeks prior, Sameh Shoukry became the first Egyptian foreign minister in nine years to visit Israel — breaking years of unwritten government protocol that ties with the Jewish state would be handled by the intelligence services.

INTO THE FRAY: Utterly Unconscionable - THE JEWISH PRESS

By: Dr. Martin Sherman
Published: July 3rd, 2016

The real reason for the rupture of relations with Turkey is not because of anything Israel has (or has not) done. It is a result of what Turkey has become.

Israelis have no conscience, no honor, no pride. Those who condemn Hitler day and night have surpassed Hitler in barbarism. – Turkish President Recep Tayyip Erdogan, (7/19/2014)

National honor is not just something people talk of on the street…It has strategic significance – Moshe (Bogey) Yaalon, Israel’s Deputy Prime Minister, (8/17/2011).

The recently announced reconciliation accord—or rather “deal” between Israel and Turkey—is utterly unconscionable—and incomprehensible. From an Israeli point of view, it is devoid of any logic on every imaginable level—national, ethical, security and even commercial—except perhaps in the immediate short-term.

Is Turkey the market for East Med gas? - IN CYPRUS / CYPRUS WEEKLY

Charles Ellinas — 02/07/2016

Last December, soon after the downing of the Russian jet, a flurry of diplomatic activity started that has now produced a positive result enabling Israel and Turkey to resume diplomatic relations. A key factor in this is the potential for Israel to supply Turkey with gas.

In a parallel, but related, development Turkey’s President Recep Tayyip Erdogan sent a letter of apology to Russia’s President Vladimir Putin for the shooting-down of the Russian jet, opening the way for rapprochement between the two countries. This too has energy implications.

Israeli partners line up Tamar, Leviathan rig - NATURAL GAS EUROPE

June 17th, 2016

The controlling stakeholders offshore Israel – Noble Energy and Delek Group – are moving forward in their expansion and development plans for Tamar and Leviathan gas fields by trying to coordinate and schedule a sequence of drilling operations between the two projects.

A source told NGE that a tender was issued for a drilling rig, which is supposed to arrive at Israel later this year. The rig will drill a new well at Tamar field, Tamar 5, the source said. The new well is part of the expansion plan for the already producing field.

Speaking at the Herzeliya Conference June 16, Delek Group CEO Yossi Abu said that by the end of the year a drilling rig would arrive in Israeli waters. However he did not refer to the Tamar field. Drilling production wells in Leviathan will follow final investment decision at the end of this year, so not before the second half of next year, at the earliest.

Israel close to signing gas agreement with Turkey - GLOBES

09/05/2016, 09:33
Hedy Cohen

An energy deal between the two countries is close says Energy Minister Yuval Steinitz and reports in the Turkish media.

Israel is closer than ever to signing an agreement to export natural gas to Turkey, according to reports in the Turkish and global press and statements by Minister of National Infrastructure, Energy, and Water Resources Yuval Steinitz in an interview at the end of last week with the "Bloomberg" news agency. Turkey wants to consume half of the quantity of gas in the Leviathan gas reservoir, starting in 2020. In the second stage, gas may be transported from Turkey to Europe through a pipeline.

"We have a strong connection with Israel, and importing Israeli gas to Turkey is a big deal for us," Zorlu Holdings CEO Omer Yungul said last week, adding that his company wanted to import 8 BCM of gas in the near future.

Turkey's natural gas war - CHINA.ORG

By Wang Jin, 23 April 2016

Turkey is trying to handle the potential natural gas crisis caused by the volatile situation in the Middle East and its tense ties with Russia.

Turkey has taken diversified measures to handle the potential natural gas crisis caused by the volatile situation in the Middle East and its tense ties with Russia.

So far, Russia has been the largest gas supplier of Turkey, delivering gas to the latter via Ukraine or the Black Sea. However, because of the tensions between Russia and Ukraine, the Ukraine route may be closed by 2019. Turkey thus has to develop a Plan B.

Additionally, the relations between Turkey and Russia have also been less than friendly. In the recent years, the two sides have differed widely on a series of major regional issues, such as the Ukraine crisis and the Syria crisis. At the end of last year, the bilateral ties worsened further as Turkey shot down a Russian fighter jet. Given this background, Turkey is eager to reduce its reliance on Russian gas to avoid being "abducted" by the latter in international affairs.

Israeli gov't to allow gas exports from Leviathan to Gaza - GLOBES

03/03/2016, 17:36
Hedy Cohen

The Ministry of National Infrastructure, Energy and Water Resources has authorized the sale of 0.25-0.4 BCM a year.

After almost seven years of attempts by the Palestinian Authority (PA) to import natural gas to the Gaza Strip, it appears that it is really happening. Sources inform "Globes" that intensive secret negotiations between Israel and the PA, led by the Quartet on the Middle East, have taken place in recent weeks for the supply of gas from the Leviathan reservoir to the Gaza Strip power station. The Israel Security Cabinet has agreed in principle to the measure, and the Ministry of National Infrastructure, Energy and Water Resources authorized the Leviathan partners several days ago to conduct negotiations. The Quartet announced that it was willing to pay for a gas pipeline to be laid by Israel up to the border.

Gas dynamics and prospects in the East Med - IN BUSINESS / CYPRUS WEEKLY

Charles Ellinas — 21/02/2016

This is based on presentations and discussions at a conference organised by the international think-tank Konrad Adenauer Stiftung at the Truman Institute in Jerusalem on February 10-11 2016.

Participation was by invitation only, with delegates from Israel, Jordan, Turkey and Cyprus, including the EU and Russia. I was a participant and made presentations at the conference and to Israel’s Ministry of Foreign Affairs.

The aim was to discuss and analyse recent developments in the East Med and the Middle East with a particular focus on geopolitics and energy, with an eye on the potential state of the region in the 2020s.