Page 14 - MEOG Week 21 2022

MEOG NEWS IN BRIEF MEOG

GAS is now talking about building more gas for the Israeli economy because it really opens
infrastructure, extending the life of coal plants the possibility for Israel to continue and
Israel hammers out deal and finding other ways to replace Russian develop more discoveries.”
While acknowledging the need to help
gas. It’s a dramatic reversal, according to
to supply natural gas to Nati Barenboim, general manager of Israel’s Europe, Barenboim is nonetheless concerned
Independent Power Producers’ Association.
that Israel not give away too much. “We need
Europe via Egypt year ago, they were talking seriously about to think seriously about keeping enough
“If we looked at the European market a
gas for the local market for at least the next
For the past month Israel has been negotiating closing all their fossil fuel power plants, 30 to 40 years,” he said, adding that Israel’s
an agreement to sell natural gas to Europe via including gas, and relying only on renewables consumption of natural gas was increasing by
Egypt, Israel’s Energy Ministry revealed on and batteries. Now they’ve completely about 1 billion cubic meters a year. (In 2019,
Sunday. changed their philosophy about natural gas,” Israel consumed about 11.25 billion cubic
The negotiations were spurred by a Barenboim told JNS. meters .)
meeting between Israel’s Energy Minister Israel has been looking to export gas to He cited three reasons for the growth: 1)
Karine Elharrar and European Commissioner Europe for years, signing a deal in 2020 for an Israel’s population is expanding by almost 2%
for Energy Kadri Simson in Paris in late EastMed pipeline that would have extended every year; 2) Israel is building new power and
March, according to an Energy Ministry from Israel’s offshore reserves to Greece. desalination plants that will require gas; and
spokesman. The Europeans told the Israelis However, the pipeline was put on ice when 3) Israel is switching its transportation system
at the meeting that if they could not find the Biden administration pulled its support in over to gas and batteries. He called this last
alternatives, “they would return to coal January, reversing the policy pursued by the point the “biggest vector increasing demand.”
mining, despite the great environmental Trump administration. “With all due respect to the European
damage caused by it,” the spokesman told JNS. At the same time, the Israeli government’s market, we are surrounded by enemies.
Following the meeting, an Israeli-European enthusiasm for gas has cooled. We are an island. And thank God we
team was set up to work out a political In December, Elharrar announced that no are independent. We should keep our
framework in coordination with the Egyptians new offshore gas exploration licenses would independence. … Nothing will replace the
to enable gas to flow to Europe. Energy be issued this year, in order to enable the natural gas, not renewables, and unfortunately,
Ministry director-general Lior Schillat, who government to focus on renewable energy. due to political issues, also not nuclear power
is leading the talks, said Egypt is involved Chen Herzog, partner and chief economist plants,” he said.
because Israel doesn’t have the technical at BDO Israel, told JNS that the European Israel’s Ministry of Energy told JNS that
resources to send gas to Europe directly. The request has had an impact on the Israeli reserves in production today are estimated at
best way, he said, is to send the gas to Egypt’s government’s attitude and that there are about 800 billion.
liquified natural gas terminal near Alexandria, “indications from the government that the “We will not find an additional Tamar or
where it would be processed and sent on to stop on gas exploration will not be extended.” an additional Leviathan,” said Barenboim,
Europe by ship. “It has become clear to Israel and the referring to the two biggest reserves off Israel’s
The catalyst for Europe’s urgency is the Europeans that natural gas, if only as a coast. “We’ll find a medium-sized reservoir.
Russian invasion of Ukraine, which has transition fuel on the way to renewables, is So that’s why we need to be very careful about
awakened the continent to the danger of still important and required,” said Herzog. how much we allow Europe to export from
relying on Russian fossil fuels; Russia has The gas deal is a win-win, according to our reserves.”
exploited Europe’s dependence to impose its Herzog, as it will strengthen Israel’s economic Herzog is less worried, basing his
will. It appears, for example, that European and geopolitical ties with Europe, and still confidence on the assumption that Israel will
energy companies will submit to Moscow’s more so, with Egypt. It will also encourage the by then have shifted to renewable energy,
demand that it receive gas payments in rubles, future development of Israel’s gas reserves, he and the fact that Israel has “set quotas and
a move that would help shore up Russia’s said. restrictions on the amount of exports that
economy while undermining European “It’s true that the quantity Israel will supply, each company or each field can export in
sanctions. in relation to the European demand, is not a order to ensure long-term energy security.”
To free itself of Russian influence, Europe game-changer,” he said. “But it is important JNS

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