Alberto Brambilla, Bloomberg News

MILAN
EnergiesNet.com 04 04 2022

 Israel is proposing to build capacity to export natural gas to Europe after Russia’s invasion of Ukraine sparked new interest in supplies from the Mediterranean, Jonathan Miller, the special envoy for energy at the country’s Ministry of Foreign Affairs, said in an interview with Bloomberg.

“Israel is willing to do as much as possible in supporting the European energy challenges,” Miller said. “The big question is how does this gas get to Europe, and this remains one of the challenges.”

Any short-term Israeli move to sell gas to the EU would likely rely on cooperation with Egypt, which has two liquefied natural gas terminals. Israel is unable to add significant LNG terminal capacity on its highly populated coastline, Miller said, adding that the country has “spoken to our Egyptian partners on the potential to increase the amount of gas through Egypt for LNG sale to Europe.”

European Union and national leaders have been in touch with Israel on potentially supplying gas to the region, Miller said, noting that plans would be on a longer-term horizon. “In the short term, these are not big figures because we have to rely on existing infrastructure, but I think it’s an important time for Europe, Israel, Egypt and partners to look to mid-term and long-term solutions on how we get to the European market.”

The discovery over the last decade of major natural gas fields beneath the eastern Mediterranean means Cyprus, Israel and Egypt could potentially enrich themselves while their exports through Greece and Italy would help Europe reduce its dependence on Russia. 

Long-term solutions could include the Eastern Mediterranean, or East Med, gas pipeline, which is still in the feasibility-evaluation phase. But East Med should for the moment be viewed “more as a concept” of international cooperation than as a concrete solution, Miller said.

“We need to be flexible and try to find the solutions that are the quickest and most economically viable,” the envoy said. Future cooperation could focus on LNG, increasing Egypt’s export capacity and in building cheaper pipelines from Israel in addition to future LNG plants and floating LNG platforms, he said. Compressed natural gas, or CNG, might also be viable “if the price is right.”

“Long-term projects are difficult to calculate,” the envoy warned, since “we don’t know how long the current gas price will remain at this level.”

bloomberg.com 04 01 2022