Page 4 - AfrOil Week 47 2022

AfrOil COMMENTARY AfrOil

(Image: NewMed Energy)
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 toward a plan for installation of an FLNG unit at the Leviathan field

RUSSIA’S invasion of Ukraine happened to Additionally, it aims to facilitate the use of
occur at a time when the governments of Israel existing infrastructure – in particular, pipelines
WHAT: and Egypt were looking into the potential for connecting Leviathan, Israel’s largest gas field, to
NewMed is considering expanding co-operation on the natural gas sections of the Egyptian gas grid that are capable
installing an FLNG at front, especially with respect to finding faster of pumping feedstock to the Idku and Damietta
Leviathan to export gas to and more economical ways to deliver gas to LNG plants.
Europe. European markets. The MoU has been hailed in Cairo, not least
The war ended up making the prospect of because it is in line with the Egyptian govern-
WHY: co-operation even more attractive, and it also ment’s hopes for transforming the country into
Israel has been indicating drew the attention of the EU to the talks between a regional gas hub, capable of handling and pro-
that it views Egypt as the parties. Indeed, in June of this year, the EU cessing production from its own wells and also
the first stop on its path joined Egypt and Israel in signing a trilateral from neighbouring countries. It has also been
toward supplying Europe
with gas. memorandum of understanding (MoU) on treated as a signal that Israel views Egypt as the
co-operation in long-term gas deliveries from first stop on its route to European gas markets.
WHAT NEXT: the Eastern Mediterranean region to Europe. (Perhaps not coincidentally, it was quickly fol-
NewMed aims to take an That document calls for the parties to work lowed by the signing of another MoU between
FID on Leviathan’s expan- together to foster opportunities for European the US major Chevron, the second largest share-
sion in early 2023. companies to invest in upstream gas develop- holder in Leviathan, on deliveries of Israeli gas
ment projects in Israel and Egypt. to Egypt.)

P4 www. NEWSBASE .com Week 47 24•November•2022