Friday, January 27, 2017

Greece, Israel (Stars Aligned?), Italy, Cyprus to Discuss East Mediterranean Pipeline

We've talked about the pipeline previously here at the blog. Most recently (I'm certain there are more  posts then the two  below)..

Jan 11/2017: Israel-Turkey pipeline hangs on Cyprus peace talks- A Fail Benefits Russia

Jan 16/2017:  Why Russia Might Want the Cyprus Talks to Fail?

Later today I hope to get to the reports of Greece's refusal to send Turkish Coup Plotters back to  Turkey.. All of this is interconnected.

Natural Gas World

Government representatives from Italy, Greece, Cyprus and Israel plan to meet in February to discuss a natural gas pipeline from the east Mediterranean fields to Greece and Italy, according to a report in Globes, a business daily.
Israel energy minister Yuval Steinitz has already met Enel CEO Francesco Starace (pictured below) to discuss possible gas deals with the Italian power generator as production in northern Europe is declining. Enel also buys gas from Algeria.

An EU-sponsored survey last year found the 2,000-km pipeline would cost $5.7bn. The project will connect the Israeli Leviathan gas field, the offshore Cypriot Aphrodite gas field and possibly other gas fields to buyers in southern Europe.

A map on the European Commision's website shows a line starting east of Cyprus and running to Crete and from there up the west coast of mainland Greece to the Adriatic and then to Italy.
Pipeline route - Cyprus via Crete to Greece and on to Italy- Israel
The pipeline would have a 12bn m³/yr capacity and the idea is for the project to be built by private-sector companies without public funding (lie, the public funds the wars that make the areas usable..), although with the moral support of the European Union.
There is always public funding for big oil. What the heck does everyone think the carbon tax is really about?
Gas experts, however, are not convinced that the project can be achieved. An Israeli expert who was asked about the project's feasibility said the chances were zero as the project cost calculations were far too low and the project is just a PR stunt.
I've read this elsewhere also- unsure of the actual reserves-  high, high costs. But there is all that public funding (debt enslavement) tohelp keep costs down- for big oil
Russian oil major Rosneft has also talked about piping gas from Egypt to Europe, an idea unlikely to meet with the same degree of support from the European Commission given the strong position Russia already holds in gas supplies. Egypt's own gas demand is also growing.
 A key part of ensuring secure and affordable (?) supplies of energy to Europeans involves diversifying supply routes. This includes identifying and building new routes that decrease the dependence of EU countries on a single supplier of natural gas and other energy resources.
The pipeline is reported to be 2000 kms long, under the sea and in a major war zone- Affordable? Let's define that? The deal between Russia and Egypt is covered in the two previous posts (re-linked at the top)

Israel sees ‘stars aligned’ for new gas pipeline to Europe- The Guardian via The Cypriot Puzzle

From 2014:
Israel and Cyprus have launched a new push for EU funds to build a pipeline that could bring about 10 billion cubic metres (bcm) of their natural gas to Europe annually, and ease the continent’s energy security anxieties. 
But Palestinians are warning that without a broader resolution of regional disputes, the pipeline risks becoming a source of conflict.
The Cyprus-centred project could be the world’s longest pipeline if built, stretching up to 1,530km, and passing through depths of up to 3,000m.
The Israeli energy minister, Silvan Shalom, raised the issue at a ministerial conference in Rome last week and held talks on the margins with the EU’s vice president for energy union, Maros Sefkovic, Israeli sources say.
Israel, Greece and Cyprus expect a formal meeting with Sefkovic to discuss ways of actualising the project, on the fringes of an EU energy ministers’ summit on 9 December.
“The three countries involved intend to raise this issue [on the 9th] as it involves funding from the commission,” an EU diplomat said. Israel, as a non-EU member, will depend on its partner countries’ powers of persuasion.
With energy diversification and security both rising up Europe’s political agenda, “it looks like the stars have aligned in one position now and that might be good for our timing,” Guy Feldman, an advisor to Shalom told the Guardian.
But the Palestinian Authority cautioned the EU against signing any contract until territorial gas disputes with neighbouring countries such as Lebanon were resolved.
“The objective of energy security starts with a clear cut boundary of all the gas fields,” said the PA’s energy minister, Omar Kettaneh. “Otherwise instead of being a source of security the pipeline will be a source of conflict.”
In 2010, the US Geological Survey (USGS) estimated that the Levant Basin, could hold more than 3,455bcm of gas, which is comparable to Iraq’s reserves.
But until now, political instability has hindered its exploitation, with Israeli and Cypriot claims to overlapping gas fields contested by Lebanon and Turkey, respectively.
In 2012, Israel, Cyprus and Greece signed a deal to promote exports of their gas to the EU through an eastern Mediterranean corridor.
The planned offshore pipeline, which diplomats say could transport between 8-15bcm of natural gas annually, has already been selected for “project of common interest” status by the EU. This potentially gives it access to a €5.85bn fund, and preferential treatment from multilateral banks.

That's how the EU claims the funding is "private" the funding is done through the banksters with the people on the hook for repayment



  2. It was nice blog on natural gas resource and its importance to Israel. Thanks for sharing