Israel Energy Minister Hopeful on Gas Export

Israel's energy minister Yuval Steinitz sees a "very rosy future" for Israel's natural gas economy in general and for gas exports in particular. Speaking at a conference in Tel Aviv November 14, he said talks would lead to sales to three destinations in three directions: north to Turkey, south to Egypt and west to Italy. Leviathan Partnership already signed a contract to export gas to Jordan, east of Israel.

According to a report in business website Globes, Steinitz said that professional teams from Israel and Turkey started negotiations concerning laying a 500-km undersea pipeline from Leviathan gas field to Turkey. The previous week, Sahul Meridor, the director-general of Israel's energy ministry met with his Turkish counterpart to discuss a framework agreement.

Steinitz also said that Israel had reached an understanding with Cyprus, Greece and Italy to lay a pipeline to southern Europe. The understanding is supported by the European Union, according to Steinitz, though experts claim it needs more gas discoveries before it can be built.

Steinitz also hopes that in the next few days the deal to sell Karish and Tanin, two small gas fields, by Delek Group, will be approved by the professional bodies within the energy ministry. The deal was reported three months ago. In the deal the Greek energy company Energean will buy the two gas fields for $148 mn plus royalties from gas sales.

Israel's offshore

(Source: Govt)

The energy ministry is supposed to publish the papers for Israel's first ever competitive licensing round on November 15.

Ya'acov Zalel