An Israeli exploration group led by the Isramco Negev and Modiin Energy companies, announced on Sunday that it had found signs of a massive natural gas reserve off Israel’s Mediterranean shore, comparable in size to the Tamar field.
Gas development delays and low prices imperil Egyptian deals for Cyprus and Israel.
Cyprus and Israel have made significant discoveries off their shores and are engaged in talks to export gas to their immediate neighbours. The two countries share the same aspiration to sell natural gas to energy-thirsty Egypt undergoing a severe energy crisis and in desperate need for cheap natural gas. Lakkotrypis and Steinitz discussed the possibility of merging pipelines from Israel and Cyprus to deliver gas to Egypt.
Egypt has begun negotiating with Cyprus to import gas from the Aphrodite reservoir, and has even raised the price of gas for the local economy in order to attract foreign companies. Another country which will import Israeli gas, Jordan, has begun negotiations to buy gas from the Gaza Marine reservoir in Palestinian waters.
Two years before, The Cypriots turned to their Israeli neighbors in the past to propose the construction of a joint LNG facility on the Vassilikos coast of the island, a proposition rejected by Israel at the time. Since then, Cyprus has moved away from its original plan to build an LNG facility for not having encountered sufficient amounts of natural gas to justify to commercial viability of the multi-billion dollar endeavour. Continue reading Egypt gas deals not viable for Cyprus for the long-time period