ATHENS - The US Energy Information Administration (EIA) said on 20 August that offshore natural gas field discoveries in the Eastern Mediterranean Sea, and the energy sectors of Cyprus, Israel, Jordan, Lebanon, Palestinian Territories and Syria “would significantly alter energy supply dynamics in the eastern Mediterranean region and could spur natural gas exports in the near future”.
However, the EIA noted in a brief that uncertainty over the location and configuration of export infrastructure persists. “But several proposals are making progress despite complications posed by regional security problems, territorial disputes, and macroeconomic uncertainty,” the report said.
One of the primary contributors to the report on the Eastern Mediterranean, Mark J. Eshbaugh from EIA’s International Energy Analysis, told New Europe on 20 August from Washington DC that, regarding liquefied natural gas (LNG), there could be around 350 million cubic feet (9.9 million cubic metres) per year available in the next five-seven years via proposed LNG facilities in Cyprus and Israel.
“OECD Europe’s 2012 demand for natural gas was approximately 17.9 trillion cubic feet (506.87 billion cubic metres) in 2012, so adding 350 billion cubic feet (9.9 million cubic metres) in five-seven years will not overwhelm the European natural gas market,” Eshbaugh said. He was asked by New Europe about the potential of EU gas discoveries in the Levant Basin and eastern Mediterranean for EU energy security.
“There are a few pipeline proposals at varying levels of feasibility, but they are unlikely to provide significantly more than the proposed LNG facilities, at least initially. Volumes from the eastern Mediterranean would be just one part of a broader gas mix for most countries,” he said, commenting on the best way to export these resources to potential markets.
“Another factor that could impact the European gas market is how other potential destination markets develop over the next several years. For example, if the price differential between Europe and East Asia persists, LNG exporters will have an incentive to send cargoes to Asian markets to capitalise on the higher prices,” Eshbaugh said.
A large share of the newly discovered energy resources will help meet domestic demand in the countries of the eastern Mediterranean region, but there could be enough surplus natural gas to spur exports from Cyprus and Israel. Determining how and where to export natural gas remains a topic of continued debate, with several proposed export routes competing for political and economic support, the EIA report said.
Israeli sources told New Europe that Tel Aviv doesn’t see gas as a strategic put purely an economic issue. They added though that if all gas fields -- Israel, Egypt, Cyprus and Lebanon -- are united then there is strategic potential. Greece is also looking for gas supplies south of the island of Crete.
The EU, which is also keen to reduce its gas dependence on Russia, is also eyeing gas reserves from EU-member Cyprus and close-partner Israel as an alternative. With the advancement of the EU Southern Gas Corridor through the Trans Adriatic Pipeline (TAP) and Interconnectors, gas from the Eastern Mediterranean could find its way to European markets.
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