Page 4 - MEOG Week 48 2022

MEOG COMMENTARY MEOG

New route to Europe

for Israeli natural gas

While the short-term path to European gas markets continues to run through Egypt,

NewMed appears to be leaning towards a plan to install an FLNG unit at the Leviathan field

ISRAEL RUSSIA’S invasion of Ukraine happened to It has also been treated as a signal that Israel
occur at a time when the governments of Israel views Egypt as the first stop on its route to Euro-
and Egypt were looking into the potential for pean gas markets. (Perhaps not coincidentally, it
WHAT: expanding co-operation on the natural gas front, was quickly followed by the signing of another
NewMed is considering especially with respect to finding faster and more MoU between the US major Chevron, the sec-
installing an FLNG at economical ways to deliver gas to European ond largest shareholder in Leviathan, on deliv-
Leviathan to export gas to markets. eries of Israeli gas to Egypt.)
Europe. The war ended up making the prospect of Within the last few weeks, though, there have
co-operation even more attractive, and it also been indications that Israel does not necessarily
WHY: drew the attention of the EU to the talks between view Egypt as the only possible route to Europe.
Israel has been indicating the parties. Indeed, in June of this year, the EU
that it views Egypt as joined Egypt and Israel in signing a memo- NewMed, Uniper sign MoU
the first stop on its path randum of understanding (MoU) on trilateral In early November, NewMed Energy – the com-
toward supplying Europe co-operation in the area of long-term gas deliv- pany formerly known as Delek Drilling that
with gas. eries from the Eastern Mediterranean region to serves as majority shareholder in and operator
Europe. of Leviathan, Israel’s largest offshore gas field –
WHAT NEXT: That document calls for the parties to work signed a non-binding MoU with Uniper, a Ger-
NewMed aims to take together to foster opportunities for European man company.
an FID on Leviathan’s companies to invest in upstream gas develop- In a statement, Uniper explained that the
expansion in early 2023. ment projects in Israel and Egypt. Additionally, parties were exploring several different avenues
it aims to facilitate the use of existing infrastruc- of co-operation, including “collaborating on the
ture – in particular, pipelines connecting Levi- supply of LNG in the short and long term and
athan, Israel’s largest gas field, to sections of the producing blue and green hydrogen.”
Egyptian gas grid that are capable of pumping In the near future, the statement said, the
feedstock to the Idku and Damietta LNG plants. companies will “look into the supply of natural
The MoU has been hailed in Cairo, not least gas from Israel to Germany in the immediate
because it is in line with the Egyptian govern- term using existing production and transmis-
ment’s hopes for transforming the country into sion infrastructure in line with the availability
a regional gas hub, capable of handling and pro- of the transmission pipeline between Israel and
cessing production from its own wells and also Egypt, where the natural gas will be delivered to
from neighbouring countries. LNG facilities, and from there to Germany.”

P4 www. NEWSBASE .com Week 48 30•November•2022