Page 10 - MEOG Week 09 2023

MEOG POLICY & SECURITY MEOG

to pay. In Spain, a “vital minimum supply” obli- highlights the political challenges involved in
gation for utilities was enacted from September doing so.
2021, ensuring vulnerable households unable to Although high and volatile fossil fuel prices
pay their electricity bills would still get supplied emphasise the unsustainability of the current
for a period of 10 months. energy system and underscore the benefits of
In some countries, compensation mecha- energy transitions, the volatility comes with sig-
nisms have been adopted for different affected nificant economic and social costs. High fossil
groups of consumers, including households, fuel prices hit the poor the hardest, but subsidies
businesses and industrial consumers. In India, tend to benefit the better-off, making effective
the Pradhan Mantri Ujjwala Yojana subsidy targeting essential.
scheme, which supports access to liquefied Well-designed policies should prevent fuel
petroleum gas (LPG) for the poorest segments supply from getting too far out of step with
of the population, saw its cost reach $820mn. demand, with resources deployed to provide
In Germany, the government implemented lasting protection against volatile fuel prices.
several additional payments to help vulnerable This means anchoring market-based prices in a
communities pay their heating bills (households broader suite of policies and measures that ena-
on housing benefits, apprentices and students ble households and industries to make cleaner
with student loans). In South Korea, vouchers for energy choices.
energy expenses – including electricity, gas, LPG High-efficiency and low-emissions equip-
and heating – were provided to around 1.2mn ment and services must be readily available, and
vulnerable households in 2022, and the voucher poorer consumers need support to manage their
amounts were raised twice during the year. upfront costs.
Phasing out fossil fuel subsidies is crucial for Governments should focus on structural
a successful clean energy transition, as empha- changes that reduce fossil fuel demand, rather
sised in the Glasgow Climate Pact, stressed the than emergency relief when fuel prices rise, con-
IEA. However, the current global energy crisis cluded the IEA.™

PROJECTS & COMPANIES

Leviathan partners move ahead

with Israeli floating LNG terminal

ISRAEL PARTNERS in the Leviathan gas field of Alexandria and the 5.2mn tpy Damietta LNG
announced their decision to earmark $51.5mn plant west of Port Said.
for the preparation of a floating liquefied natural It is expected that it will be three years after
gas (FLNG) facility on February 21. a final investment decision (FID) before the
The FLNG terminal located off the coast of additional gas produced at the Leviathan gas
Israel will have a production capacity of 4.6mn field begins flowing to Egyptian LNG plants.
tonnes per year. The FLNG terminal will commence operations
Partners NewMed Energy, Chevron and after that.
Ratio Energies will also allocate $45mn to The announcement comes on the same day
increase production at the gas field to 21bn cubic that Israeli Foreign Minister Eli Cohen met US
metres by expanding the reservoir’s production energy envoy Amos Hochstein to discuss the
system by designing subsea infrastructures and Israeli energy sector’s potential to help Europe
altering the production platform. Currently, the and the Middle East.
deep-sea field produces 12 bcm for sale to Israel, “Some of the regional stability we aspire to
Egypt and Jordan. comes, among other things, from stability in the
With Europe seeking to wean itself off energy market,” Cohen said.
Russian gas following the latter’s invasion of The Leviathan gas field is the largest energy
Ukraine, the European Union signed a mem- project in Israel’s history and began supplying
orandum of understanding (MoU) in June last gas to Israel, Egypt and Jordan at the end of 2019.
year with Israel and Egypt for Israeli gas to be NewMed Energy holds a 45.3% stake, Chev-
sent to Europe via LNG plants in Egypt, which ron has a 39.7% interest and Ratio Energies owns
is home to the 7.5mn tpy Idku LNG plant east a 15% interest.™

P10 www. NEWSBASE .com Week 09 01•March•2023