Haaretz: Pipe dream? Israeli gas exports to Turkey hinge on Palestinian issue

Now that Australia’s Woodside Petroleum has pulled out of the Leviathan offshore gas field, taking its expertise in liquefied natural gas with it, the future of Israeli energy exports seemingly lies with finding customers in the region.

But a report by the Institute for National Security Studies, which is affiliated with Tel Aviv University, warns that Turkey – the biggest potential customer for Israeli natural gas – isn’t likely to make any deals so long as diplomatic relations between the countries don’t improve. Regional markets like Turkey could get their gas delivered cheaply and quickly by pipeline, while distant markets like East Asia require the gas to be liquefied at dedicated plants and then sent by tanker.

But INSS is skeptical that Turkey will import Israeli gas, noting, “An agreement that resolves the dispute between Israel and Turkey is a necessary condition for an agreement over exporting Israeli gas to Turkey. Commercial businesses trying to advance exports stand no chance of achieving their goals without a solution,” the report states.
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