Israeli Government Failing to Encourage Natural Gas Use in Transport Sector - HAARETZ

Aug 02, 2017 5:52 AMOren Dori 
Despite huge domestic reserves, precious few experimental cars run on natural gas in Israel, new study finds
Seven years after Israel’s government declared it would use the country’s vast natural gas energy reserves to power cars and trucks, virtually nothing has been done, according to a study released this week by the Samuel Neaman Institute for National Policy.

As of today, just two or three cars on an experimental basis are fueled by natural gas even though Tamar, the largest field at present, boasts an estimated 318 billion cubic meters of gas and the much bigger Leviathan reservoir, with 613 BCM, is due to begin production in 2019.

Meanwhile, globally, over the last seven years, the number of natgas-powered cars on the roads doubled to 23 million vehicles, most of them in Asia and a $23 billion market, the researchers point out. By 2024, that number should reach about 30 million.

Turkey’s floating LNG imports deliver cheaper gas and energy security - LNG WORLD SHIPPING

Mon 03 Apr 2017

Turkey’s new floating storage and regasification unit (FSRU) will alleviate strain on seasonal imports and enables the country to diversify its sources of supply, writes Anders Norlen

Turkey’s gas consumption is rising fast and sharp seasonal demand swings and limited storage mean supply is tight over winter. Deploying FSRUs offers a solution to Turkey’s problems.

The Turkish gas market has grown over the last 10 years from 27bcm in 2005 to 48bcm in 2016. About 70 per cent of this demand growth has come from increased gas use in power and industry, reflecting the last decade’s robust economic growth and a 30 per cent hike in winter heating demand in the residential and commercial sector.

Israel hydrocarbons lessons - IN CYPRUS / CYPRUS WEEKLY

March 25, 2017
Fiona Mullen

When energy consultant Gina Cohen first visited Cyprus about five years ago, shortly after the Aphrodite field had just been discovered, she advised the group gathered at the time to “think small”.

Unfortunately the opposite happened. We had politicians suggesting that $80 billion (about four times GDP) was on its way to government coffers, grand designs for a regional hub centred on a land-based liquefied natural gas plant (LNG) and more recent proposals for a long pipeline from Israel to Italy.

Meanwhile, five-and-a-half years after the discovery of the Aphrodite field, Cyprus is still importing diesel and polluting heavy fuel oil to feed its power plants. This means that electricity prices are still subject to large swings in oil prices. This year electricity prices are on the rise again, eating into disposable incomes during a year in which people might see their first pay rise in five years.

EGAS natural gas imports down since start of 2017 thanks to higher output, lower consumption - ENTERPRISE / AL BORSA

Monday, 13 March 2017

EGAS has cut its imports of natural gas imports to five monthly shipments (equivalent to 700 mcf/d) from eight (800 mcf/d) since the beginning of 2017 thanks to rising domestic production and lower consumption, Al Borsa reports. 

Imports will rise again to 1.4 bcf/d in May when summertime demand kicks in, according to a top EGAS official. Domestic production is expected to increase to 5 bcf/d from a current 4.5 bcf/d by the second half of the year, before the Zohr field comes online.

Energy diversification top priority for Turkey, Minister Albayrak says - DAILY SABAH / ANADOLU AGENCY

AA Photo

HOUSTON, TX, 8 March 2018

Turkey's main goal in the energy sector is diversification, Energy Minister Berat Albayrak told a U.S. conference Tuesday.

"More than half of our electricity generation is from gas," he told the IHS CERAWeek energy conference in Houston, Texas. "This can't be sustainable, so we changed this strategy.

"We are aiming to diversify our natural gas portfolio in the following years."

The last 15 years have seen Turkey's GDP rise from $200 billion to more than $800 billion, while public debt to GDP ratio shrunk from 80 percent in 2002 to around 30 percent today.

"You have to invest in energy to meet this growth and your growth targets," Albayrak said.

Turkey to become natural gas hub, says former Gazprom executive - DAILY SABAH

20.2.2017

TurkStream necessary for region's natural gas supply

[Alex] Barnes said that Turkey, receiving natural gas from different sources such as Iran, Russia and Azerbaijan, would become a regional hub by putting the necessary rules into practice.

"Natural gas, which will pass through TurkStream, will be needed by Europe since the U.K. and the Netherlands are slowing their natural gas production. In addition, Europe should also increase its use of gas to reduce coal use. If they want to buy Russian gas via Turkey, they will pay and receive it," said Barnes, as he evaluated the second pipeline in the TurkStream natural gas pipeline project.

Turkey to experience no gas shortages in winter - DAILY SABAH

13.2.2017

Energy and Natural Resources Minister Berat Albayrak said on Sunday that all necessary measures have been taken to ensure that Turkey will not experience gas shortages in winter anymore.

Albayrak stated that Turkey's natural gas consumption was increasing due to the country's development, the proliferation of natural gas and the increase in industrial production. He added that seasonality also played a large role in gas consumption.

Turkey reached a record high on the first Monday of 2016 with 232 million cubic meters of natural gas consumption, which was managed without any problems, the Energy Minister said.

Word Bank aid will be used in part to pay off arrears to IOCs - ENTERPRISE

Wednesday, 11 January 2017

The government will pay arrears to international oil companies in part through the second tranche of the USD 3 bn World Bank development loan, an Oil Ministry official tells Al Shorouk. Arrears owed currently stand at USD 3.5 bn as December, Oil Minister Tarek El Molla had previously stated. This comes as the ministry has requested that the CBE allocate USD 270 mn per month to cover daily gas imports of 1.4 bcf, starting from June, Al Borsa reports, citing an unnamed ministry source. The ministry’s request comes as CAPMAS announced that natural gas consumption is on the rise, climbing by 11.8% last October.

Power sector seizes 60% of natural gas consumption: Egypt's EGAS - ZAWYA / AMWAL AL GHAD

Wednesday, 04 January 2017

Egyptian electricity sector seizes around 60 percent of state's total consumption of natural gas, an official source at the Egyptian Natural Gas Holding Company (EGAS) stated Tuesday.

Speaking to Amwal Al Ghad, the source added that the rise in natural gas consumption of all Egyptian sectors within the last years was the main factor behind government's decision to liberalise gas market.

EGAS owns a network for transporting and distributing gas without getting any returns on these investment, the source clarified.

Breakeven Rundown: Mediterranean, GoM Gas Outshine Others - HART ENERGY / STRATAS ADVISORS

Monday, November 28, 2016 - 3:00pm
Velda Addison

When it comes to breakeven prices for development projects targeting natural gas, the ultradeep water of the Mediterranean Sea and the deep U.S. Gulf of Mexico are hard to beat.

This is based on research conducted by Stratas Advisors, which studied the economics of about 150 natural gas assets worldwide.

“Driven by the low-cost Leviathan gas development with high well productivities offshore Israel, the breakeven price of the ultra-deepwater development is only about $1.5/Mcf [thousand cubic feet], much lower than its counterparts in the shallow-water and deepwater developments in Egypt and Libya, where the breakevens are around $4.4/Mcf and $3.8/Mcf,” the research and consulting company said in a report. “The low cost giant gas discovery Zohr, offshore Egypt, drives the average price down in the deepwater segment.”

Egypt- Power plants' gas consumption rises to 3.4bn cubic feet a day: Petroleum Ministry - MENAFN / DAILY NEWS EGYPT

14/07/2016

In the past week, power plants' consumption of natural gas reached about 3.4bn cubic feet per day compared to 3.3bn cubic feet as a result of high temperatures.

A source at the Ministry of Petroleum told Daily News Egypt that the power plants receive 30,000 tonnes of fuel oil per day as well as 4,000 tonnes of diesel.

He said that gas imports through the two floating natural gas import terminals at Ain Sokhna Port and the Jordan gas line have increased to reach 1.3bn cubic feet per day, which is the maximum capacity for gas imports. The gas imports are made up of 1.2bn cubic feet coming from the terminals in Ain Sokhna and 100m cubic feet coming from the floating natural gas import terminal at Aqaba Port in Jordan.

Turkey hits historic gas consumption record in Jan. - ANADOLU AGENCY

Turkey's monthly natural gas consumption reached historic high at 5.78 bcm in Jan. 2016, Turkish Energy Watchdog says

22.03.2016 ANKARA

Turkey's monthly natural gas consumption reached a historic record high at 5.78 billion cubic meters (bcm) in January 2016, according to data from Turkish Energy Watchdog.

In January 2016, 5.78 bcm of natural gas was consumed, Turkish Energy Market Regulatory Authority, EMRA, announced on Tuesday in its monthly natural gas report for January.

The new monthly record is 5.7 percent higher than the previous highest consumption which was seen in January 2015 with 5.47 bcm.

Turkey's daily highest consumption was also seen in January 2016 with a consumption rate of 235 million cubic meters of gas, Turkey's Energy Ministry had announced in February 2016

Israel-Turkey rapprochement - IN CYPRUS / CYPRUS WEEKLY

Charles Ellinas — 28/02/2016

Last December, soon after the downing of a Russian jet, and a bad year for Turkey, a flurry of diplomatic activity started with Israel aiming to restore full diplomatic ties with Ankara.

After years of false starts, Israeli and Turkish negotiators went to Geneva two weeks ago for talks aimed at ending this long-running conflict.

A consequence of Turkey’s confrontation with Russia is a threat to its gas supplies, which are heavily dependent on imports from Russia.

Turkey needs friends in its neighbourhood, but it also needs to secure alternative supplies of gas. Israel needs to export its gas, but it also needs friends to contain Iran’s increasing influence in the region. Any gas from Israel to Turkey has to go through Cyprus’ EEZ, putting Cyprus in the middle.

Turkey Changes Tack for the 2020S: Energy Specialist - NATURAL GAS EUROPE

February 24th, 2016

Turkey needs to react quickly to the consequences of the dramatic worsening of its relations with Russia since November. Hasan Selim Ozertem, head of energy security studies at Turkey’s international strategic research organization (USAK), spoke to NGE about the problems facing over half of Turkey's gas supplies and the steps it can take to mitigate them.

Ozertem is one of the new generation of Turkish think-tank experts. He has worked on projects with the UN, the Turkish ministries of domestic and foreign affairs and the UK major BP.

Mr Ozertem, this is a critical juncture in the Turkish-Russian relations. What is its impact on Turkey’s energy security?
Russian-Turkish relations were projected to be mutually beneficial through inter-dependence between our two countries. In the longer term this may be still valid, but right now there are concerns about the future as economic cooperation becomes a secondary issue among increasing security concerns in the region. Turkey’s neighbourhood is unstable, the East Med is a region of unresolved disputes and Russia is confrontational. The rift with Russia is deepening.

Understandably within Turkey energy security has become a major issue, something we were not considering a priority issue a few months ago. But it has now become a popular subject once again. Russia has not cut gas supplies, but we need to ensure our energy needs, including future needs, are secured.

EGAS decreases gas imports to 650m cubic feet per day - DAILY NEWS EGYPT

LNG shipment will arrive to Sokhna Port to connect to national gas grid, says official

Mohamed Adel February 13, 2016

The Egyptian Natural Gas Holding Company (EGAS) decreased the volume of imported gas by approximately 650m cubic feet per day compared to 700m feet in January.

The decline was a result of the decline of gross domestic consumption of natural gas, according to a senior official in EGAS.

The capacity of the two gas ships that facilitate the transport of gas is estimated at 1.2bn cubic feet per day.

Until Egypt has access to enough gas, it will suffer economically - THE DAILY STAR

Feb. 01, 2016

Brendan Meighan| The Daily Star

One of the most pressing crises facing the Egyptian economy has been the severe shortage of natural gas. The crisis itself – which involves supply cuts to factories and frequent electrical outages – has received copious coverage in the domestic and international press and has tested the patience of the Egyptian people and the business community. However, during the first week of November, officials at the Egyptian Natural Gas Holding Company (EGAS) announced that Egyptian heavy industry was now being supplied with all of its needed natural gas and other fuels. Officials from a number of companies and trade organizations confirmed this on Dec. 2. There has also been an absence of reports of power cuts in major residential areas. Unfortunately for Egypt, this may simply be the result of a lull in demand due to moderate weather and slower production from heavy industry, not a permanent end to the shortages.

Egypt’s Natural Gas Crisis | Carnegie Endowment for International Peace

BY BRENDAN MEIGHAN 

Egypt’s temporary relief from its ongoing gas crisis is the result of a lull in demand, not an improvement in industry outlook. Thursday, January 21, 2016

One of the most pressing crises facing the Egyptian economy has been the severe shortage of natural gas. The crisis itself—which involves supply cuts to factories and frequent electrical outages—has received copious coverage in the domestic and international press and has tested the patience of the Egyptian people and the business community. However, during the first week of November, officials at the Egyptian Natural Gas Holding Company (EGAS) announced that Egyptian heavy industry was now being supplied with all of its needed natural gas and other fuels. Officials from a number of companies and trade organizations confirmed this on December 2. There has also been an absence of reports of power cuts in major residential areas. Unfortunately for Egypt, this may simply be the result of a lull in demand due to moderate weather and slower production from heavy industry, not a permanent end to the shortages.

Analysis: Turkey Balances on Brink of Gas Supply Crisis | Platts

Istanbul (Platts) -- 21 Dec 2015 824

* Existing entry point capacity is 193 million cu m/d
* Peak Turkish demand could reach 215 million cu m/d
* More cuts of supply to CCGT plants expected 

All eyes in the Turkish gas market have been focused on the possibility of a cut in supplies from Russia in the wake of the November downing of a Russian fighter jet.

But even if all Turkey's gas suppliers fulfill their contracts, the country still faces serious problems.

Turkey's gas consumption last year reached 48.72 Bcm, 7.74% up on the 45.2 Bcm reported in 2013.

This year it was expected to exceed 50 Bcm, perilously close to Turkey's total import portfolio of 52.05 Bcm/year.

While that portfolio was last month boosted by a deal with Qatar for an unspecified number of spot LNG cargoes, that extra supply would only help cover any shortage caused if any of Turkey's other suppliers fail to deliver necessary volumes.

It could not overcome the limitations of Turkey's gas infrastructure, mostly operated by state gas importer and transit operator Botas.

Such is the fine balance between Turkey's potential daily maximum gas demand and the technical limitations of the country's gas infrastructure that all it would take to trigger a shortage is a particularly cold period.

Given the unpredictability of Turkish winters, that could happen any time between now and the end of February, or not all.

And given that any new pipeline gas will only arrive in Turkey at the end of 2018 at the earliest when first Shah Deniz gas arrives via the TANAP link, the tight supply/demand balance is likely to be an issue for the next three, possibly four, winters.

DAILY CAPACITY

In August 2014, Platts reported daily demand for gas could reach 215 million cu m/day, while Turkey's existing gas delivery infrastructure could supply a maximum of 193 million cu m/d.

The problem was confirmed the following month by then energy minister Taner Yildiz who said gas demand could exceed the system's ability to supply during the following winter if the country experienced extremely cold weather. Since then little has changed and therein lies the problem.

The capacity of the entry points to Botas grid remain unchanged: Four major pipeline entry points, two of which carry gas from Russia, one from Iran and one from Azerbaijan; two LNG terminals one on the Sea of Marmara operated by Botas and a privately operated facility at Aliaga on Turkey's Aegean coast; and one underground storage facility under the Marmara and some limited local production, itself in decline.

The only new addition to Botas's system is a new loop line across the Sea of Marmara that will not increase entry capacity but will allow flexibility transferring gas arriving from the south and east, northwest to Turkey's main demand center Istanbul.

As it happened, last winter proved mild by Turkish standards though the country still suffered a limited shortage when plummeting January temperatures caused gas demand to rise above supply.

'CURTAILMENT PROCEDURE'

A major crisis was avoided when the ministry implemented its 'curtailment procedure', a process of consultation involving state and private sector bodies.

The first stage sees state gas-fired power plants switching to fuel oil from gas.

A second stage sees major private CCGT plant ordered to cut gas burn by 50%, and a third sees those same plants being forced to burn fuel oil alone.

The procedure was implemented to stage three twice during January and February this year with nine major CCGT plants totaling 10 GW told to switch fuel.

That procedure has already been implemented to stage two once this winter, with operators of CCGT plant of over 500 MW instructed to cut gas burn by 50% from December 10-14.

That cut was made in the wake of a 50% cut in supply from Iran for 36 hours on December 8-10.

While private plants were given the go ahead to return to normal consumption, and private generators have told Platts that Botas has assured them that all of Turkey's gas suppliers are supplying at normal volumes, it was unclear whether the four state-owned gas fired plant totaling 3.78 GW have also been cleared to burn gas again.

CUT RISK

With Turkey's gas infrastructure unable to meet peak demand in cold weather, further cuts in supply and requests for fuel substitution were inevitable, an official from one private generator told Platts.

And that is not taking into account possible cuts from suppliers such as Iran and Russia.

These, he said, were a real possibility with Russia and Turkey still at loggerheads over the downed plane. If Gazprom were to supply only the minimum contracted gas volumes needed to meet its legal commitments, that would leave Turkey suffering a major shortage.

Although clearly a risk, such fears were not universally held.

Another official from Turkey's private power sector said that because Russia was facing financial difficulties, it would be wary of cutting existing revenue streams.

Any reduction, however limited, could prove serious.

While only 29% of Turkey's 72.5 GW installed capacity is gas-fired, this capacity generates anything up to 51% of the power consumed in a given month.

The variation depends on water levels in Turkey's hydro dams, which account for 35% of capacity.

With most of Turkey having experienced a particularly dry period at the end of November, state grid operator TEIAS said the dams held a total 2.528 trillion cubic meters (tcm) of water, down 20% on the volume anticipated in Turkey's 2015 generating program and 16% below the long-term average for November.

More worryingly, it was also down 13% on levels reported at the end of December 2014, only days prior to Turkey implementing its curtailment procedure and forcing private CCGT plant to switch to fuel oil.

So, while the winter remains mild, Turkey may escape without suffering any real hardship.

But it still seems under-prepared for significant shortages until TANAP begins pumping gas.

--David O'Byrne, newsdesk@platts.com
--Edited by Dan Lalor, daniel.lalor@platts.com

SOURCE

EGAS cuts its gas imports to 700m cubic feet to cope with decline in domestic consumption | Daily News Egypt

The company is to pump 2.6bn feet of gas per day to power plants

The Egyptian Natural Gas Holding Company (EGAS) has  decreased gas imports to approximately 700m cubic feet per day from the 1bn feet per day that it imported throughout November. The measure is a response to the decline in domestic consumption.

A senior official at EGAS told Daily News Egypt that domestic consumption of gas has fallen to an estimated 2.6bn cubic feet of gas per day from November’s figures of 2.85bn cubic feet daily.

The EGAS official said that gas provision has been restored to all factories, where approximately 906m cubic feet of gas are pumped daily to high-consuming factories, meeting their maximum gas needs.

Fertiliser factories receive 510m cubic feet of gas a day, according to the official with public sector factories, Abu Qir and Talkha, receiving 138m and 67m cubic feet per day respectively. A total of 65m cubic feet are transferred to the International Petroleum Investment Company (IPIC) that exports its full production.

Moreover, EGAS transfers approximately 45m cubic feet of gas a day to Misr Fertilisers Production Company (MOPCO) factories and 90m cubic feet to Al-Masriya 1 and 2 factories, as well as 42m cubic feet of gas a day to Helwan factory and 18m feet to El-Nasr.
As for high-consuming steel factories, 210m cubic feet are provided on a daily basis, divided between El-Daqahleya which receives 100m cubic feet; Suez Steel, 100m cubic feet; and Egyptian Iron, 45m cubic feet.

The official noted that the Methanex factory, a Canadian company that provides methanol, has been put back on after a yearlong stop. The factory now feeds on 125m cubic feet of gas per day.

The industrial sector has faced severe power supply shortages since 2013 as a result of Egypt’s declining gas production.

EGAS provides 61m cubic feet of gas per day to cement factories that still operate on gas and have not shifted to work on heating oil, diesel, or coal.

The official said about 25m cubic feet of gas are pumped daily to Helwan Cement factory, 25m feet to The National Cement Company, and 11m feet to El-Qatamiya Company for cement.

About 1.3bn cubic feet of gas per day are exploited for domestic usage including use in cars, houses, and low-consuming factories.

Egypt’s total consumption of gas currently is estimated at 4.706bn cubic feet of gas per day, where 4.106bn cubic feet of local production is provided for Egyptian fields.

He said the two gasification ships in Ain El-Sokhna port provide about 700m cubic feet per day from gas imports, from which the gas is transferred through the national grid to be distributed to consumers.

The official added noted plans to introduce a third gasification ship which would arrive at the SUMED port in Ain El-Sokhna by the end of 2016 to provide gas for the new power plants.

The gasification ship stores imported gas in a liquid state until it is to be converted to a gaseous state and introduced into the national distribution grid.

On the other hand, the EGAS official said the latest modifications to gas prices for high-consumption fertiliser factories is still a matter of discussion and no modifications will be approved until a solution is reached and agreed upon with all factories.

EGAS negotiated a new price equation pertaining to factories obtaining 50% of their needs from imported gas, with a price of $9 per a million thermal units with the rest of the gas being transferred according to the price agreed upon in the contracts.

The average price of imported gas that EGAS agreed to supply factories ranges from $8 to $9 per a million thermal units.

Local production is not expected to fulfil the electricity needs of homes, cars, and the industrial sector during the summer. To meet this shortfall, EGAS will begin importing gas in March 2016 and halt its gas output to high-consuming factories during the summer to provide for an expected rise in domestic consumption.

Source