Israel ramping up gas output, looks to help supply Europe

div classBodysc17zpet90 cdBBJodivpBy Ari Rabinovitchp

pHAIFA, Israel Reuters – Israel is boosting offshore natural gas output and aims to reach a supply agreement with Europe in the coming months as the continent looks to replace Russian supply.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe country is on track in the next few years to double production to about 40 billion cubic metres bcm from about 20 bcm as it expands current projects and brings new fields online, industry officials say.p

pIsrael currently supplies its own market and through a local network of pipelines exports to neighbours Egypt and Jordan, while much of the additional gas is earmarked for Europe.p

p“The hope is to create a relatively fast working process and already during the summer to reach a framework agreement,” said Lior Schillat, director general of Israel‘s Energy Ministry, during a recent visit to the drill ship at Karish, a gas field some 90 km off Israel’s coast due to come on line later this year.p

pIts owner, Londonbased Energean, recently discovered more deposits nearby.p

p“At the beginning it will be small amounts and slowly, as production and delivery capacities rise, the amounts will increase,” Schillat said.p

pAgreements like this, he said, are usually first reached between governments and deals are then finalised in the private sector. Realistically this would help Europe no sooner than 2024, he said, without specifying which countries or groups would potentially be involved.p

pROUTEp

pChoosing a supply route is challenge which requires navigating the regions politics, but one option would be to export to Europe via liquefaction plants in Egypt and then pipe it north via pipelines which are in various planning stages.p

pA floating liquefied natural gas FLNG facility also being discussed would allow shipments to Europe directly from Israel.p

pOther possibilities include the proposed Eastmed pipeline, an ambitious and costly project that would connect the gas fields to mainland Europe, or a shorter pipeline to Turkey. {nL8N2971OL}p

pEgypt is the quickest route to Europe, an FLNG would offer independence from any transit country, while a direct pipeline would provide the cheapest endconsumer price but take longer to build, gas consultant Gina Cohen said in a report presented to both Israels Foreign Ministry and the European Parliament.p

p“Israel must act as quickly as possible as the window to sign contracts and become a significant gas supplier to Europe will only be opened for a limited time,” Cohen said.p

pIsrael, Cyprus and Greece have already signed an agreement to build an underwater power cable linking their electricity grids and offer backup power during emergencies.p

pEurope due to the war in Ukraine is looking to halt supply from Russia, provider of about 40 of its natural gas. Russian deliveries last year totalled around 155 bcm.p

pIsraeli gas would help Europe diversify, along with supply from others such as the United States and Qatar.p

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pp Reporting by Ari Rabinovitch editing by Jason Neelyp

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