East Mediterranean Energy Security Must Be a Priority
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East Mediterranean energy security must be a priority With Israel’s Tamar gas field about to enter production, the East Mediterranean energy sector needs a special security focus, says the head of a Tel Aviv consultancy By Charles Coe ECO Energy chief executive Dr. Amit Mor has called for a greater regional security focus Israel’s huge Tamar gas field is expected to commence first production next month The development of the region’s offshore sector is drawing in a number of countries As Israel’s Tamar gas field prepares to “One can think of several groups that delegates. come on stream next month and Cypriot might wish to interrupt the supply of energy officials begin to push for an LNG from Vassilikos for a number of Cyprus security LNG export facility that they hope to reasons – especially if Israel should Security for the Tamar infrastructure is see in operation by the end of 2019, the supply gas to the facility,” he said. becoming a major issue for the Israeli issue of security for infrastructure that “It is the duty and obligation of the government and the developers of will require millions of dollars of Cypriot government to come up with a Tamar, he said, urging Cypriot investment and provide fuel for plan after completing a comprehensive politicians, government and energy domestic power generation systems study – how to guarantee the security of officials at the conference to “secure requires more attention, according to Dr. Vassilikos,” Mor said. Vassilikos.” Amit Mor, a Israeli energy expert. “This is not just about military At present, the Cyprus National Providing security at the proposed security,” he added, “we are talking Hydrocarbon Company (KRETYK) is LNG plant at Vassilikos on the southern about geopolitical strategy that should looking at a plan for Vassilikos that will coast of Cyprus – a facility that Israel be built within the project such as begin with a 5 million tonne per year may eventually use to export some of its involvement of European, American and train based on the natural gas resource in own natural gas resources – is a matter Russian companies.” the Aphrodite field in Block 12, where that the Cypriot government must give Noble Energy may have discovered 7 greater study, Dr. Mor, who is CEO of Tamar dependence trillion cubic feet (198 billion cubic ECO Energy – Strategic & Economic Speaking at the 2nd Cyprus Energy metres) in December 2011. Consulting in Tel Aviv, told MEOG Symposium in Nicosia on March 15, More trains will be added as more gas during an interview last week in Mor stressed to delegates that security at is discovered in the Cyprus offshore. Nicosia. Vassilikos was a primary issue that The investment figure at this point is “I’m talking about the ability of would be the preoccupation of every tentatively estimated at US$10 billion. Cyprus to guarantee the supply of LNG company and institution connected with for years without interruption,” Mor the project and used as an example the Offshore drilling said. security concerns that exist in Israel as Noble is planning appraisal drilling and “This is the right time to start the Tamar gas field prepares to start further exploration in Block 12, which considering the security of Vassilikos.” operations. contains at least one other hydrocarbon “In one month’s time, 60% of the structure, later this year. Vassilikos plant power in Israel will be based on natural Meanwhile, Italy’s Eni and its South Security for the plant and its gas from one gas field, five subsea Korean partner KOGAS, and France’s infrastructure is one side of this issue, wells, two parallel pipelines connected Total are about to start exploration work Mor said, but then there are also to one offshore platform, one pipeline to in blocks that were awarded to them strategic security risks that must be shore and one receiving terminal at earlier this year. thoroughly analysed. Ashkelon,” Mor told conference energy co-operation agreements have been signed, but this is unlikely to prevent Israel from improving its now strained relations with Turkey. Mor said he was aware that a number of ministers in the Turkish government as well as private sector professionals supported a gas pipeline project from Israel to Turkey, but that the sticking point appeared to be the political position of Turkish Prime Minister Recep Tayyip Erdogan, who is responsible for downgrading the bilateral relations between the nations and who may oppose the idea. Israeli options Apart from Israeli exports through Cyprus or Turkey, other options for KRETYK Executive President Delek and Ratio) approve gas exports Israeli gas include the use of floating Charles Ellinas, who also spoke at the through Cyprus, gas from Israel’s LNG vessels (FLNG) or possibly conference, said the natural gas resource offshore Leviathan field, where the onshore LNG facilities at Eilat or in the six offshore blocks that Cyprus resource is estimated at 18 tcf (509 Ashkelon, although environmental now has awarded could amount to 40 tcf bcm), would be processed at the activitists are expected to oppose such (1.13 trillion cubic metres), enough to Vassilikos facility. The partners in the onshore projects. allow for production of up to 30 million Leviathan gas field, which include Gas exports to Jordan are also a tonnes per year of LNG in the future. Noble Energy and Israel’s Delek Group possibility. (also partners in Cyprus Block 12), are Whatever Israel decides about how it Export routes exploring all the options for exporting might export its gas resource, security is Exports of Israeli natural gas, by gas from the field, Mor said, including a going to be a key factor, and here it will whatever means, is currently a matter of pipeline to Turkey, which would be the likely spread the risk. public debate and will ultimately be most economical, he added. “Israel should export its gas by more decided by the new Israeli government, than one means,” Mor said, “FLNG – most likely within a matter of months, Diplomatic triangle probably two or three vessels, pipelines Mor told MEOG . But this project would itself pose a to Cyprus or to Turkey, possibly to The decision will be based on the diplomatic tangle, in that such a pipeline Jordan. Also the option of Israel recommendations put forward last year would need to cross Cyprus’ exclusive constructing an onshore LNG terminal by Israel’s inter-ministerial committee economic zone (EEZ), which Turkey at either Eilat of Ashkelon is still on the headed by Ministry of Energy and Water contests. table,” he said. Resources Director General Shaul Cyprus and Turkey have been at “For Israel, it will take another two or Zemach. political odds since 1974, when Turkey three years before it can commit to a While the original recommendations invaded the island and backed the specific export scheme,” Mor said. suggested exporting as much as 500 bcm Turkish-Cypriot community’s attempt in of Israel gas – holding 450 bcm in 1983 to establish a separate state. This article appeared in Middle East Oil reserve for Israel’s domestic needs over Ankara does not recognise the & Gas Monitor (MEOG) , published by the next 25 years – the amount that Republic of Cyprus as the island’s NewsBase. Israel eventually decides at this stage to sovereign government. export might be less, Mor said. Diplomatic relations between Israel For further information: Should the Israeli government and the and Cyprus have strengthened over the Tel: +44 (0)131 478 7000 developers (Noble Energy, Woodside, last two years and several bilateral E-mail: [email protected] .