Israel is preparing for gas revolution

Category: Commodities, Markets 957

Israel is preparing for a gas revolution, after in recent years the country released several promising discoveries in the Mediterranean Sea. The country is working to develop gas routes in three directions – north to Turkey, south to Egypt and west to Italy.

The shareholders, who developed field Leviathan, which is considered one of the most promising fields developments, has already signed an agreement to export gas in the eastern direction – to Jordan. Besides the field Leviathan in the last decade in the Mediterranean Sea Israel opened several very promising areas, including Tamar and the smaller Kalisz, Tannin and Aphrodite. According to the Israeli Ministry of Energy the reserves of Leviathan are estimated at about 500 billion cbm, and in the Tamar are about 300 billion cbm. The last deposit was discovered in 2009 and is now being developed.

Israel has already signed an agreement with Cyprus and Greece to transport gas in the direction towards Europe. According to initial estimates the project for a new gas triangle in the Mediterranean will cost about 5.7 billion USD. So the gas from the offshore gas fields around Cyprus will pass through Greece and Crete Island, and will reach South Eastern Europe.

Israel leads discussions with Turkey and Egypt to export commodity. However, at current stage the low prices of oil markets put questions about the economic benefits from the projects.

Egypt is preparing to become an exporter of natural gas after the discovery of Zohra, which is estimated as the largest gas field in the Mediterranean Sea so far. According to experts stocks there are about 850 billion cbm. Egypt has started to seek route for its gas and one of them is Europe, which again will be through the territory of Greece.

For Europe, the new gas fields in Israel, Cyprus and Egypt means real diversification of sources, when the raw material reaches its territory.

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