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.

Gas may play a major role in India-Cyprus bilateral trade - MONEY CONTROL

Apr 09, 2018 07:33 PM IST

"India is a major natural gas importer and here Cyprus may play a role in exporting gas to India," Cyprus High Commissioner to India Demetrios A Theophylactou said here today during an interactive session at the Merchants' Chamber of Commerce and Industry.

Natural gas has the potential to play an important role in greater bilateral trade between Cyprus and India in the years to come, a diplomat said here today.

"India is a major natural gas importer and here Cyprus may play a role in exporting gas to India," Cyprus High Commissioner to India Demetrios A Theophylactou said here today during an interactive session at the Merchants' Chamber of Commerce and Industry.

He, however, clarified that no serious dialogue has been going on at present between the two countries in this regard.

India expects to double share of natural gas in the country’s energy mix to more than triple imports to 70 million tonnes per year by 2022 for which more terminals are being planned.

Cabinet approves India-Israel MoU to boost oil and gas sector - OUTLOOK INDIA

03 JANUARY 2018 Last Updated at 4:14 PM

New Delhi [India] - The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the signing of a Memorandum of Understanding (MoU) between India and Israel on cooperation in the oil and gas sector.

The MoU is expected to provide an impetus to India - Israel ties in the energy sector.

The cooperation envisaged under the agreement will facilitate promotion of investments in the two countries, technology transfer, R&D, conducting joint studies, capacity building of human resources and collaboration in the area of startups.

Indian, Greek E&P groups bid for licenses offshore Israel -OFFSHORE MAGAZINE

11/29/2017

HAIFA, Israel – Israel’s government has closed the country’s 1st offshore licensing round.

The Ministry of Energy received bids from Athens-based Energean, which is currently developing the offshore Karish and Tanin gas fields; and from a consortium of Indian companies comprising ONGC Videsh, Bharat PetroResources, Indian Oil Corp., and Oil India.

Dr. Yuval Steinitz, Minister of Energy, said: “This bid round is the first step in a long-term process that would lead to full exploitation of gas and oil resources in the Israeli EEZ for the benefit of the Israeli citizens.

“We are planning to launch a 2nd licensing round in 2018, where lessons learned from the 1st bid round will be incorporated, and thus continue the effort to develop these strategic assets in the Israel’s exclusive economic zone.”

Indian Oil Minister tells "Reuters": We'll bid for Israel's blocks - GLOBES

4 Sep, 2017 17:36
Globes correspondent

“We will definitely bid for Israel’s oil-and-gas blocks,” Indian Oil Minister Dharmendra Pradhan told "Reuters."

“We will definitely bid for Israel’s oil-and-gas blocks,” Indian Oil Minister Dharmendra Pradhan has told "Reuters."

India and Israel have developed close economic and political ties over the past few years, which have included the visit of Prime Minister Narendra Modi in July, and the signing of major defense deals such as the $2 billion agreement signed by Israel Aerospace Industries (IAI) to supply India with advanced missile systems.

Now Pradhan has told "Reuters" that the Indian state owned Oil and Natural Gas Corp. (ONGC) will bid in the latest auction of 48 offshore blocks, which closes in November. "Reuters" also revealed that a high-ranking delegation from India visited Israel last month "to discuss taking part in the tender for blocks in the Mediterranean Sea and Israeli officials said they were pleased with the visit."

Companies exploring offshore gas field deals in Israel - THE ECONOMIC TIMES

Aug 29, 2017, 12.16 AM IST
Sanjeev Choudhary, ET Bureau

NEW DELHI: Indian energy firms are exploring investment opportunity in Israel’s offshore gas fields as well as possibilities of importing some of their advanced technologies as part of a larger effort between the two countries to strengthen energy ties following the recent visit by Prime Minister to the Middle East nation.  

A delegation of executives of ONGC Videsh Indian Oil, Bharat Petroleum and Hindustan Petroleum, led by an oil ministry official, visited Israel last week, to explore investment and technological opportunities.  

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.

India's ONGC Videsh to bid in Lebanon gas field auction: India government - REUTERS

JULY 10, 2017 / 11:15 AM

NEW DELHI (Reuters) - Indian energy company ONGC Videsh will bid in an upcoming auction to explore and develop gas fields off the coast of Lebanon, India's oil minister said on Monday.

ONGC Videsh, the overseas investment arm of India's top explorer Oil and Natural Gas Corp, is among several companies pre-qualified to bid for offshore exploration and production licenses from the Middle Eastern nation.

Indian oil minister Dharmendra Pradhan, leading a delegation at the World Petroleum Congress in Istanbul, made the comment in a Tweet after meeting with Lebanese Energy and Water Minister Cesar Abou Khalil.

President says natural gas discoveries in Cyprus' EEZ provide opportunities for cooperation - CYPRUS NEWS AGENCY

27/04/2017 20:55 
CNA - CYPRUS/Nicosia

Discoveries of natural gas in Cyprus` exclusive economic zone provide opportunities for cooperation with third countries, in the region and beyond and this is why Cyprus has pursued effective collaboration with a number of neighbouring countries, including Egypt and Israel, President Nicos Anastasiades has said.

Addressing an event in New Delhi on Thursday organized by the Observer Research Foundation titled "The European Union – Indian Strategic Partnership in the 21st Century: A Cyprus Perspective", the President called on state or private companies from India to explore opportunities for partnerships with Cyprus or in collaboration with partner countries in the region.

Cyprus President is coming to India, with a Gandhi and a lot more to offer - INDIAN EXPRESS

April 24, 2017 3:58 am, Nicosia

Sanghamitra Mazumdar 

Gandhi is revered in Cyprus and the painting reflects the relationship India has had with the European nation for decades

The Rashtrapati Bhawan will soon have another Mahatma Gandhi portrait, this one by acclaimed artist George Georgiou. The work of art will be gifted to President Pranab Mukherjee by Nicos Anastasiades, the President of the Mediterranean island nation of Cyprus, who begins a four-day tour to India on April 25 with ministers and trade delegates.

Gandhi is revered in Cyprus and the painting reflects the relationship India has had with the European nation for several decades now. The two countries share a British colonial past and have subsequently enjoyed good diplomatic ties. India supported Cyprus in its struggle for independence, which the latter got in 1960, and has continued to vote at the United Nations for a peaceful resolution of the Cyprus dispute since the 1974 Turkish invasion.

Egypt Sends Rare LNG Cargo in Midst of Newfound Buying Binge - BLOOMBERG

Anna Shiryaevskaya, Tsuyoshi Inajima, Dan Murtaugh
June 17, 2016

One of the world’s newest liquefied natural gas importers is again shipping out the fuel.
Egypt, which last year began importing LNG to meet domestic demand while halting shipments from two multibillion-dollar facilities that produce the fuel, this month sent out its second shipment this year. The Provalys loaded at the Ikdu terminal on June 3-4 and is headed to Japan, according to shipping data compiled by Bloomberg.

East Med gas export risk | in-cyprus.com (Cyprus Weekly)

10 January 2016, by Charles Ellinas

As we enter 2016, potential gas exports from the East Med are again attracting attention.

With the gas regulatory framework deal in Israel approved, there is talk about gas exports to Egypt, Jordan as well as Turkey.

Cyprus has been negotiating with Egypt for over 15 months now to export Aphrodite gas for Egypt’s own use or for liquefaction at Idku and export to Europe. There is talk about Egypt becoming a hub for the region, exporting its gas to Europe and the world.

For some time now, both Israel and Cyprus have been in negotiations to export their gas. Gas sales contracts are normally for 15-20 years. Their commercial viability depends on gas prices, project costs, risks and the ability to ensure uninterrupted exports over the contract period.

But the East Med is a volatile region with complex geopolitical problems, amidst a global oil and gas price crisis. This article addresses the key risks associated with these export options.

Gas exports to Egypt

Egypt has gone through turmoil over the last few years. The government of President Abdel Fattah al-Sisi has brought a degree of stability, but terrorism and security risks remain and have a serious impact on tourism.

In addition, foreign government grants declined. As a consequence of the resulting foreign exchange shortages and fiscal deficits, Egypt was unable to reduce its debt to the international oil companies and to maintain payments for its LNG imports in 2015.

These problems and Egypt’s inability to keep up payments continue.
In the past, terrorism was directed to sabotaging the gas pipelines crossing Sinai. The shutting down of the EMG gas pipeline to Israel in 2012 led to the decision by the International Chamber of Commerce to award $1.76billion compensation to Israel Electric Corporation, and the immediate suspension by Egypt of gas negotiations with Israel.

When Egypt ran into gas shortage problems it unilaterally diverted all gas going to the LNG plants at Damietta and Idku to support its domestic consumption. This is still the case. As a result of this Union, Fenosa and BG have resorted to international arbitration, which is still pending.

Terrorism, government stability, arbitrary decisions, adherence to formally-signed contracts and ability to maintain payments are some of the key risks to be considered when committing to gas exports to Egypt.

This is particularly important when one considers that project viability and profitability require export certainty over the 15-20 year contract period.

Gas exports to Turkey

Some of these risks also apply to East Med gas exports to Turkey. A pre-requisite of course is that the Cyprus problem is resolved in 2016, making such exports possible.

As a result of the Mavi-Marmara incident, Turkey severed all links with Israel.
Even though negotiations for normalisation of ties are progressing well, Turkey still says that there will be no renewal without Israel opening-up Gaza to unlimited access.

Should there be a gas pipeline between Israel and Turkey, what would be Turkey’s reaction to possible future flare-ups between Israel and Gaza?

As a result of disagreements with Turkish Cypriots about who would manage water distribution, Turkey for a while shut-down the water pipeline it built to the north of Cyprus. Would similar actions be taken with gas pipelines in response to disputes with the gas-supplying countries?

Internally there is increasing instability within Turkey and its problems with Russia and its neighbours, particularly with regards to Syria, introduce a degree of volatility. How reliable a partner would Turkey be in the future?

Syria strife

The Syrian problem looked as if it was going towards containment and possible solution towards the end of 2015, but with recent flare-ups between Saudi Arabia and Iran it is in danger of being set back. And Syria is at the centre of the East Med, with potential instability impacting on Turkey and Lebanon and the wider region.

Cyprus problem

As indicated earlier, solution of the Cyprus problem is a pre-requisite for gas exports from Israel to Turkey, as the pipeline will have to pass through Cyprus’ EEZ. The same applies to potential gas exports from Cyprus to Turkey.

Without a solution, Turkey also appears to be determined to disrupt exploration and exploitation of hydrocarbons by Cyprus, as it demonstrated when Noble was drilling in Block 12 in 2011 and more recently when ENI was drilling in Block 9.

What would happen when further drilling resumes this year, as currently planned? Also, what would happen if Cyprus actually reaches agreement and proceeds to export its gas to Egypt, given Turkey’s views about Cyprus and Egypt’s government.

The global oil and gas prices

Global oil and gas prices are expected to remain low into the 2020s, with oil just gone below $35 per barrel.

In particular, with huge new quantities of LNG coming into global markets, LNG prices are expected to go down further, with no rises forecast until after 2022.
Low oil-prices have also impacted the investment capability of oil companies operating in the East Med. In addition, it remains to be seen what Shell does with BG’s assets in Egypt once the acquisition is completed.

The agreement just made by Qatar to renegotiate its long-term LNG sales contracts with India and lower the price by 50%, to $6.50 per mmBTU, and wave any penalties has sent shockwaves to the rest of the global LNG-industry.

Long-term contracts, which so far have been the corner-stone underpinning commercial viability of LNG projects, are no longer sacrosanct. LNG buyers have the upper hand and will demand and get new terms reflecting current reality.

Any exports in the form of LNG will have to compete with such low prices if they are to succeed and be commercially viable. This makes gas exports from Israel and Cyprus to Egypt – for liquefaction and re-export as LNG – a challenge.

Conclusions

Exporting East Med gas through pipelines is subject to the above-discussed risks. Only options under the full control of the exporting country, such as FLNG and FCNG, are less risky. These could potentially unlock the full potential of East Med hydrocarbons.

FLNG and FCNG could also be commercially viable, limiting costs so as to compete in the southeast Europe and Turkish gas markets. They offer export flexibility, not limited to fixed destinations.

The region is volatile and experience shows that regional geopolitics and instabilities undergo frequent upheavals.

The commercial development of East Med gas can attract the necessary investments from oil and gas companies and banks only if the type of risks identified in this article are satisfactorily addressed. Political will alone will not make projects happen.

Charles Ellinas is a hydrocarbons business consultant
SOURCE

November 29th, 2015

ISRAEL TESTED SUCCESSFULLY A MISSILE DESIGNED TO PROTECT OFFSHORE NATURAL GAS PLATFORMS

The Israeli Navy has completed successfully a test of a new missile, Barak 8, a surface to air missile designed to protect against various types of airborne threats including anti-ship missiles and UAVs (unmanned aerial vehicle). The missile was launched from aboard a battle ship and hit a small UAV in what a navy officer described as small and difficult target to hit, according to Ha'aretz daily.

Barak 8 is planned to be mounted on the four battle ships Israel has ordered from Germany this year, in a $500 million deal, a third of it is paid for by the German tax payer. The missile will be able to hit targets that are moving in supersonic speed.

In future tests the ability of the missile will be tested against land-sea missiles like the Russian supersonic Yakhont anti-ship cruise missile. The Yakhont can be launched from land and with 600 km range poses a risk to Israeli natural gas infrastructure in the east Mediterranean if it is launched either from Syrian shores or from Lebanese shores. According to the naval officer, who briefed reporters, the missile's development phase will be ended in one to two years' time following "the elimination of a few risks [in the development phase]".

Barak8 is developed in cooperation with India.

Ya'acov Zalel


Source: http://www.naturalgaseurope.com/israel-tested-successfully-a-missile-designed-to-protect-offshore-natural-gas-platforms-26775

Indian co eyes stake in Leviathan - report | Globes

Indian co eyes stake in Leviathan - report

28/12/2014, 10:52

Globes correspondent

Indian newspaper "The Financial Express" says state-owned ONGC Videsh would like to participate in the Leviathan gas field.

Indian financial newspaper "The Financial Express" reports that Indian state-owned company ONGC Videsh (OVL) is interested in buying a stake in Israeli gas reserve Leviathan, estmated to contain 21.93 trillion cubic feet of gas.

"The Financial Express" quotes an unnamed official source as saying, “OVL would like to participate in the Leviathan fields and other blocks offered for farm-in in Levantine basin in Israeli waters. Since India has been importing crude oil from West Asian countries such as Iran, Iraq, Kuwait and Saudi Arabia, opportunities in Israel were not pursued so far.”

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ONGC Videsh is active in sixteen countries and has invested over $22 billion in gas and oil exploration. The company's CEO refused to say whether it intended to invest in Leviathan, but did say that it was looking for opportunities.

Trade between Israel and India has burgeoned in recent years, notably through some high-profile contracts with Israeli defense companies. A potential deal on Leviathan may also be supported by warmer diplomatic relations: it has recently been reported that the government of prime minister Narendra Modi is considering changing India's diplomatic stance towards Israel by ceasing its automatic support for the Palestinians in the United Nations.

Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

Source: http://www.globes.co.il/en/article-indian-co-eyes-stake-in-leviathan-report-1000996342