Redrawing Europe's energy map will fuel multifaceted benefits for Israel's future - JERUSALEM POST

OCTOBER 5, 2019 19:17 JESSE BOGNER 

As the recent drone attacks on Saudi oil facilities as well as ongoing US-Iran tensions threaten the stability of energy markets worldwide, the opposite trend is taking hold in Israel, a nation that has long grappled with the challenges of being surrounded by hostile oil-rich neighbors.

The once-unthinkable notion of Israeli gas exports to Egypt is on the verge of becoming a reality following an agreement reached this month that enables the East Mediterranean Gas Company to operate Europe Asia Pipeline Co.’s coastal terminal in Ashkelon. At the same time, the $7 billion Israeli-Greek-Cypriot EastMed pipeline has the potential to forge Israel’s presence as an energy provider to Europe.

Yet a different pipeline project which is rarely mentioned in the same breath as Israel carries a dual promise – propping up the Israeli economy while bolstering the Jewish state’s long-term security, with or without Israel’s direct participation in the initiative.

Though Israel has yet to sign onto the project, the Azerbaijan-led Southern Gas Corridor (SGC) should be squarely on the nation’s radar as it looks to expand its influence economically. SGC’s scope is staggering. Spanning 2,200 miles (3,540 km.) across seven countries and connecting three linked pipelines, the $41.5b. project will reshape the geopolitical landscape of European energy consumption.

Turkey at the Eastern Mediterranean Crossroads - THE JERUSALEM INSTITUTE FOR STRATEGIC STUDIES (JISS)

Cyprus' declared (Blocks 1-13) & undeclared EEZ

18.12.2018
Dr. Hay Eytan Cohen Yanarocak

Turkey finds itself at a historic junction where it must decide whether to proceed alone by challenging Israel, Egypt, Greece, and Cyprus – or whether to embrace regional cooperation.


Introduction
The eastern Mediterranean, an arena of great power struggles, has undergone dramatic changes over the past decade. The “Arab Spring,” Egyptian military takeover, civil war in Syria, refugee waves, and Turkey’s deteriorating relations with the West and Israel – are the most important aspects of this drama.

However, these remarkable developments alone do not provide a complete picture of the forces transforming the region. Russia is once again establishing a permanent presence, while China seeks anchors for its “Belt and Road Initiative.” Moreover, the newly-discovered natural gas resources have turned the eastern Mediterranean into one of the most significant geostrategic maritime zones, which may reshape the regional balance power and the dynamics of European energy politics.

With its abundant natural gas reserves and opportunities for joint ventures, the eastern Mediterranean is emerging as an important region, shaping the balance of power and paving the way for new alliances. As a key player in the region, Turkey finds itself at a historic junction, where it must decide whether to proceed alone by challenging Israel, Egypt, Greece, and Cyprus – or whether to embrace regional cooperation.

East Mediterranean partnership signals an energy revolution - JERUSALEM POST

Tsipras (L), Netanyahu (R)

DECEMBER 1, 2018 22:24
EMMANUEL NAVON 

Natural gas has turned Greece from a rival to an ally just as relations between Israel and Turkey started deteriorating.

The announcement in November that Israel, Cyprus, Greece and Italy have agreed to build a natural gas pipeline (the longest in the world) from Israel’s offshore gas fields to Europe, clearly indicates that Israel has chosen the Greek option over the Turkish one. In the past, Israel had considered a pipeline to Europe via Turkey, but the idea was dropped in favor of the Greek option. Building a natural gas pipeline via Turkey would have been cheaper and more viable economically, but it became politically unfeasible due to Turkey’s hostile policy toward Israel, Cyprus and Greece.

Natural gas has turned Greece from a rival to an ally just as relations between Israel and Turkey started deteriorating. Israel discovered the huge Leviathan gas field in 2009, shortly before the 2010 MV Marmara incident, which contributed to the rift between Israel and Turkey. In 2010, Benjamin Netanyahu became the first sitting Israeli prime minister to visit Greece, and the Israeli and Greek air forces started their first joint military exercises. In September 2011, Israel and Greece signed a security cooperation agreement. Israel now uses Greek airspace for training purposes.

Did Israel just back our quest to become the region’s premier energy hub? - ENTERPRISE

Wednesday, 15 August 2018

Israel’s foreign ministry gave our quest to become the East Med’s gas export hub a huge pat on the back at the expense of Turkey. A classified report from Israel’s Foreign Ministry has recommended that Israel rely on exporting its natural gas to Europe through Egypt, rather than Turkey, according to Ynet News (Hebrew). According to the report, Egypt is the best option on the economic, political, and strategic fronts than Turkey, which is “a dangerous and volatile player,” and is also preferable to Greece.

The endorsement casts shade on an EU-endorsed pipeline that would run from the East Mediterranean through Turkey — the rival proposal to exporting the gas to Europe from Egypt. Energy analysts have long complained that the pipeline was not cost effective compared with the Egypt option. Regional politics and tensions between Israel, Cyprus and Turkey have also dimmed the prospects of the pipeline. Not to mention the fact that plans to export from Egypt are already underway with international agreements having been signed, including the USD 800 mn-1 bn pipeline.

Cyprus, Greece, and Israel Chart a Common Path - BESA CENTER

June 10, 2018
Dr. George N. Tzogopoulos

BESA Center Perspectives Paper No. 861

EXECUTIVE SUMMARY: Cyprus, Greece, and Israel are steadily building a democratic geopolitical bloc in the Eastern Mediterranean. They are exploring ways to collaborate in fields ranging from energy to communication technology and defense. Greek-American and American-Jewish communities are exploiting the momentum to further boost the developing “triangle” and encourage US support. However, despite progress among the governments and the generally positive climate, warning signs of anti-Semitism in Greece underline the need for grassroots action to combine political achievements with wide public support.

The fourth Cyprus-Greece-Israel tripartite summit, which took place in Nicosia on May 8, 2018, made plain the determination of the three countries to deepen their cooperation. Nicos Anastasiades, Alexis Tsipras, and Benjamin Netanyahu discussed new fields of interest, including public security, cinema co-production, maritime pollution, telecommunications, and the reduction of data roaming costs. They agreed that the fifth trilateral summit will take place within the year in Beersheba, a place described by Netanyahu as “cyber city.” At that event, the parties plan to advance their dialogue on communication technologies.

DEBATE: What Is the Best Way to Transport Levantine Gas to Europe? - BESA CENTER

February 22, 2018Dr. George N. Tzogopoulos

BESA Center Online Debate No. 7, February 22, 2018

Q: Energy discoveries in the Eastern Mediterranean are changing regional dynamics in the Basin. Key players – principally Cyprus, Egypt, and Israel – are taking steps to achieve energy independence and are exploring opportunities for exports. The EU, which is interested in reducing its energy dependency on Russia, could be a client in the future. BESA joins the debate by asking: How can natural gas from the Eastern Mediterranean be better transported to Europe?

Respondents: Michael Ratner, Gallia Lindenstrauss, Tim Boersma, Defne Sadıklar-Arslan, Marc-Antoine Eyl-Mazzega, Theodore Tsakiris, Sohbet Karbuz

Delek Shares Tumble on Report That Israel-Turkey Gas-export Deal Is in Jeopardy - HAARETZ

TheMarker Feb 06, 2018 1:10 AM

Eran Azran

Shares of Yitzhak Tshuva’s Delek Group tumbled Monday after Bloomberg News reported that plans to develop an undersea pipeline to deliver Israeli natural gas to Turkey looked increasingly troubled amid fraying bilateral relations. Israel has shifted its priorities to exporting to Egypt and Europe, markets with their own political problems or high costs, Bloomberg said, citing two unnamed sources. Turkish pipeline company Botas canceled a December visit to Israel, Bloomberg said. None of the companies involved would comment. 

In another setback for Delek, Moody’s lowered the outlook for the B3-rated debt held by Ithaca, Delek’s wholly owned North Sea energy company, to Negative. Moody’s said it was concerned about the low output rate at Ithaca’s Stella field, the cash flow from which is supposed to help repay the company’s $750 million in debt and reduce its leveraging. Shares of Delek, which owns 45.3% of Israel’s giant Leviathan gas field, finished down 7.45% at 542 shekels ($156.97).

Fraying Israel-Turkey Ties Threaten Planned Gas Venture - BLOOMBERG

February 5, 2018, 5:49 PM GMT+2Yaacov Benmeleh and David Wainer

• Israeli companies said to shift deal focus to Egypt, Europe
• Erdogan’s public condemnations have angered Israeli officials

A U.S.-backed initiative to build an undersea natural gas pipeline between Israel and Turkey looks increasingly troubled as Turkish President Recep Tayyip Erdogan escalates his public denunciations of the Jewish state.

Israel has shifted its priorities to exporting to Egypt and other markets because of the growing discord with Turkey, according to two people familiar with the matter, who spoke on condition of anonymity because the issue is sensitive. Efforts to reach governmental understandings with Turkey continue but the pace of talks has fallen off sharply, one of them said.

Price, not politics, stymying East Med gas - CYPRUS MAIL

January 28, 2018
Charles Ellinas

The greatest problem making exports of East Med gas, especially from Cyprus and Israel, challenging and difficult, is not political risk, but commercial due to the low global gas prices. You experience political risk when you reach the point of selling. If the prospect of selling is not there, where is the risk?

Exploring and discovering the gas has not been stopped due to political risk. But despite strong EU support, neither Cyprus nor Israel are anywhere near selling their gas to Europe. They cannot find buyers.

The key limiting factor is price.

Israeli sources: EU funding, better 'understanding' between Cyprus, Turkey necessary for East Med pipeline to materialize - NAFTEMPORIKI

Wednesday, 01 November 2017 14:42, UPD: 02/11/2017 10:10
V. Kostoulas

The prospect of securing EU funding and a "better understanding" between Cyprus and Turkey are judged as significant factors for achieving the construction of the East Med natural gas pipeline, which would link deposits exploited in the east Mediterranean with west European markets.

Israeli analysts well versed with the Netanyahu government's energy policy directly referred to these two factors in comments to "N" last month, while adding that the proven energy reserves comprise a valuable took in exercising policy in the wider region.

Why Developing Israel’s Leviathan Gas Field Is a Mammoth Task - KNOWLEDGE @ WHARTON

Aug 25, 2017

Suddenly, it’s all happening in the Eastern Mediterranean.

After years of delay, confusion and dwindling hopes, the efforts to develop the offshore natural gas Israel discovered in 2009-2010 — especially the giant Leviathan field — are back on track. This rebirth began late last year, but it is the slew of developments in recent weeks which seems to signal a move into much higher gear.

If Israel’s potential as an energy producer is this time fulfilled, it will impact everything from regional geopolitics to the commercial prospects of the specific American, Israeli and Greek-Cypriot energy companies now engaged in exploration and production. But that remains a very big “if.”

Cyprus smiling at potential Egypt-Israel energy link - IN CYPRUS / CYPRUS WEEKLY

August 21, 2017

Cyprus energy hopes have been handed a massive boost following the move by Egyptian President Abdel al-Sisi to amend legislation that would allow direct gas imports from Israel into his country.

Nicosia sees the move as a positive step in bolstering the island’s energy plans as the lack of cooperation between neighbouring Egypt and Israel was seen as a major sticking point.

The change in legislation effectively means that Cyprus can supply Egyptian LNG plants with natural gas.

Al-Sisi passed the law at the beginning of August and is expected to be implemented before the end of the year although some companies have already started negotiations with Israel to purchase natural gas from the Israeli Leviathan gas field.

Israel has a gas conundrum - THE ECONOMIST

Aug 17th 2017| CAIRO

Egypt could help Israel get rid of its excess gas

LONG a resource-poor country, Israel now has more natural gas than it knows how to use. Even by conservative estimates, the fields discovered off its Mediterranean coast since 2009 hold enough energy to meet domestic needs for 40 years. The government hopes to earn a windfall by selling the excess abroad; the owners of Leviathan, the largest field, have earmarked 9bn cubic meters (bcm) for export each year. Jordan has already signed a deal to buy some. Israel wants to send the rest farther afield—offering it to Europe as an alternative to Russian supplies. But geography and politics make that difficult.

Israel's role in Turkey's gas hub - PETROLEUM ECONOMIST

London/Tel Aviv, 1 August 2017
Gina Cohen, Aura Sabadus

Turkey needs more gas and wants to diversify the sources. LNG and a pipeline from Israel are the answer

A recurring theme in Turkish political discourse has been an ambition to establish an energy hub to capitalise on the country's strategic location linking resource-rich countries to its east with European markets to its west. Israeli gas and new flexible supplies of liquefied natural gas can help Turkey deliver on the aim.

So far, Turkey's strategy has lacked clarity and the objective has been open to multiple interpretations, each reflecting the country's tortuous relations with its neighbours and the poor level of market liberalisation and regulatory reform that would be needed to create a viable gas hub.

Turkey Lobbying Israel to Push Cyprus on Approving Gas Pipeline - BLOOMBERG

July 20, 2017, 3:25 PM GMT+3
Selcan Hacaoglu

• Officials of both nations discussed gas cooperation last week
• Negotiations over creating a new federal Cyprus have collapsed

Turkey wants Israel to use its clout to push Cyprus into allowing a pipeline to pass through its waters so the region’s natural gas can be exported to Europe.

“Israel, as a dominant force in the region, could push Cyprus to agree to a compromise deal on the drilling of gas and construction of an export gas pipeline via Turkey” to the benefit of all sides, said Reha Denemec, an adviser to Turkish President Recep Tayyip Erdogan. Officials from both countries discussed possible cooperation on gas during a conference last week in Istanbul, he said. Israel’s Energy Ministry had no immediate comment.

Israel and Turkey patched up ties recently after years of diplomatic estrangement and are eager to advance an energy deal that would help transform Israel into a gas exporter and bolster Turkey as a key gas portal for European states. One key obstacle has been Turkey’s conflict with Cyprus, which has been divided since 1974, with northern Cyprus controlled by a self-declared state supported by Turkey. The latest round of United Nations-sponsored reunification talks faltered earlier this month.

A Natural Gas War Is Brewing In The Mediterranean - OILPRICE.com

Jul 16, 2017, 12:00 PM CDT
Cyril Widdershoven

Offshore gas developments in the East Mediterranean region are heating up. Alongside increased exploration efforts and a possible gas pipeline deal between Turkey and Israel, geopolitical risks are increasing too. While commercial prospects are starting to look good for all parties, a real military conflict is also brewing and may come to a head if Cyprus, Greece and Turkey are not able to find a solution soon.

Optimism has been high of late about the prospects of offshore Cyprus gas developments, not only due to the increased interest and agreements reached by Nicosia and several international partners, but also based on a possible Cyprus reunification success. However, the latest development has once again proved to be in vain, as the two main stakeholders, [Greek Cypriots] and [Turkish Cypriots], were again not able to find a solution to solve the dispute. Both sides still accuse each other of being unwilling to reach a final solution. This continuing military standoff could threaten the ongoing offshore oil and gas exploration projects of French oil major Total and Italian major ENI. The oil majors have stated that they will start their offshore drilling operations at Block 11 on July 16.

Indian companies to bid for Israeli oil and gas licenses - YNETnews.com

15.07.17 , 17:24
Ilan Evyatar/TPS

After Israel issues tenders for licenses to drill in 24 blocs of up to 400 square kilometers in size, India announces that it will take part in the bidding for natural gas and oil licenses in Israel’s maritime economic zones.

Indian energy companies will take part in the bidding for natural gas and oil licenses in Israel’s economic waters, India’s Minister of State for Petroleum and Natural Gas Dharmendra Pradhan told his Israeli counterpart Yuval Steinitz, during a meeting in Istanbul, Turkey on Wednesday.

The two met on the sidelines of the World Petroleum Congress and agreed to set up joint work teams to strengthen energy cooperation between the two countries. The announcement comes a week after a historic visit to Israel by Indian Prime Minister Narendra Modi, in which trade deals worth billions of dollars were signed.

Turkey energy minister 'to visit Israel for pipeline deal' - i24NEWS

   Turkish energy Minister Berat Albayrak, July 27, 2016 (AFP)

JULY/12/2017 6:08:16 PM
Written by AFP

He added that no exact date for a visit had been fixed but it would take place in the coming months

Turkey's Energy Minister Berat Albayrak is set to visit Israel by the end of this year to conclude an agreement for the building of a natural gas pipeline from the Jewish state to Turkey, the Israeli energy minister said on Wednesday.

A visit by Albayrak, son-in-law of Turkish President Recep Tayyip Erdogan and a key member of his inner circle, would be a significant diplomatic move by Ankara after a rapprochement deal last year between the two countries mended a long-standing rift.

Cypriot Unification Talks Carry Israeli-Turkish Pipeline Dream - VOA

UNSG Guterres (left), Cypriot president Anastasiades, March 2017

June 27, 2017 3:06 PM
Dorian Jones

Turkish and Greek Cypriot leaders are set to sit down Wednesday to once again seek to resolve the nearly five-decade-long division of the island. The success of the talks now carries with it potentially far reaching energy implications for the region, involving Turkey, Israel and the European Union.

Israel and Turkey are in talks to develop a major pipeline that would exploit the massive Leviathan gas reserves discovered off the Israel coast.

The EastMed Pipeline Could Be a Giant Step Towards Enhancing Regional Security - BESA CENTER

June 22, 2017
George N. Tzogopoulos
BESA Center Perspectives Paper No. 505

EXECUTIVE SUMMARY: The EastMed pipeline, a proposed means of transporting gas from the eastern Mediterranean to new markets, would be expensive and difficult – but it is feasible. Easier and less expensive solutions are also being considered, but the security element works in EastMed’s favor. EastMed would allow Cyprus, Greece, and Israel to collaborate while developing their roles as hubs of stability in a turbulent neighborhood. The EU and the US would likely see improvement in Western energy dependence. And Israel would have the opportunity to improve its relationship with the EU, not only by participating in a project of European interest but also by finding new clients for its own gas in the European market.