Reports related to this article:
Project(s): View 1 related project in PECWeb
Released June 28, 2022 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Union (EU) has struck a landmark deal with Israel and Egypt for the supply of liquefied natural gas (LNG) as Russia continues to restrict gas flows into Europe.
The EU signed a memorandum of understanding (MoU) with both countries at an energy conference in Cairo that will see Israel export its natural gas to Europe for the first time. Europe is aiming to reduce dependence on gas supplies from Russia--which stands at roughly 40%--in the wake of its invasion of Ukraine earlier this year. Israeli gas will be sent to liquefaction plants in Egypt, after which it will be shipped north to markets in Europe. Israel has no facilities for liquifying natural gas. The agreement comes in a week when Russia's state-owned Gazprom reduced gas flows into Europe via its Nord Stream 1 pipeline into Germany, claiming technical issues.
"It is known that Russia's war against Ukraine has exposed our European dependency on Russian fossil fuels," said European Commission President Ursula von der Leyen. "And we want to get rid of this dependency. We want to diversify to trustworthy suppliers. And Egypt is a trustworthy partner. For us it is important that we really discuss the whole width of energy supply that is possible. Today, we are already taking a very important step, as we have signed in the morning a Memorandum of Understanding of natural gas delivery from Israel to Egypt. Here, gas will be liquefied and then transported to the European Union. This is a big step forward in the energy supply to Europe, but also for Egypt to become a regional energy hub."
Israel's Minister of Energy, Karine Elharrar, said: "This is a historical moment in which the small country of Israel becomes a significant player in the global energy market. The MoU will enable Israel, for the first time, to export Israeli natural gas to Europe, and it is even more impressive looking at the significant set of agreements we signed over the last year, which position Israel and the Israeli energy and water sectors as a key global player."
Israel has two operational gas fields off its Mediterranean coast--Tamar and the larger Leviathan field--containing an estimated 690 billion cubic meters (Bcm) of natural gas. A new field--Karish--was recently connected to the country's national gas line. The country has already signed lucrative gas export agreements with neighboring Egypt and Jordan. There is also speculation that the EastMed pipeline project, which would travel from the Leviathan platform to Cyprus and Greece in order to bring Mediterranean gas to southern Europe, could be fast-tracked. Industrial Info is tracking seven associated projects worth almost US$4 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipelines Project Database can click here for the reports.
The three-year deal will see the EU working with both countries to encourage European companies to bid in competitive tenders and invest in projects for the exploration and production of natural gas in Israel and in Egypt. There will also be cooperation on infrastructure projects, including looking at the need to build and develop new LNG plants. In addition, the EU and Egypt will develop a Mediterranean Hydrogen Partnership to promote investments in renewable electricity generation. This will include strengthening and extending electricity grids, including trans-Mediterranean interconnectors, the production of renewables and low carbon hydrogen and the construction of storage, transport and distribution infrastructure.
Egypt, which relies on Ukraine and Russia for 80% of its grain supplies, is facing food shortages. The EU has provided US$106 million in immediate relief to increase food security and, over the coming years, has committed to investing almost US$3.2 billion into boosting the country's local food production, specifically in the areas of agriculture, nutrition, water and sanitation programmes.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
The EU signed a memorandum of understanding (MoU) with both countries at an energy conference in Cairo that will see Israel export its natural gas to Europe for the first time. Europe is aiming to reduce dependence on gas supplies from Russia--which stands at roughly 40%--in the wake of its invasion of Ukraine earlier this year. Israeli gas will be sent to liquefaction plants in Egypt, after which it will be shipped north to markets in Europe. Israel has no facilities for liquifying natural gas. The agreement comes in a week when Russia's state-owned Gazprom reduced gas flows into Europe via its Nord Stream 1 pipeline into Germany, claiming technical issues.
"It is known that Russia's war against Ukraine has exposed our European dependency on Russian fossil fuels," said European Commission President Ursula von der Leyen. "And we want to get rid of this dependency. We want to diversify to trustworthy suppliers. And Egypt is a trustworthy partner. For us it is important that we really discuss the whole width of energy supply that is possible. Today, we are already taking a very important step, as we have signed in the morning a Memorandum of Understanding of natural gas delivery from Israel to Egypt. Here, gas will be liquefied and then transported to the European Union. This is a big step forward in the energy supply to Europe, but also for Egypt to become a regional energy hub."
Israel's Minister of Energy, Karine Elharrar, said: "This is a historical moment in which the small country of Israel becomes a significant player in the global energy market. The MoU will enable Israel, for the first time, to export Israeli natural gas to Europe, and it is even more impressive looking at the significant set of agreements we signed over the last year, which position Israel and the Israeli energy and water sectors as a key global player."
Israel has two operational gas fields off its Mediterranean coast--Tamar and the larger Leviathan field--containing an estimated 690 billion cubic meters (Bcm) of natural gas. A new field--Karish--was recently connected to the country's national gas line. The country has already signed lucrative gas export agreements with neighboring Egypt and Jordan. There is also speculation that the EastMed pipeline project, which would travel from the Leviathan platform to Cyprus and Greece in order to bring Mediterranean gas to southern Europe, could be fast-tracked. Industrial Info is tracking seven associated projects worth almost US$4 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipelines Project Database can click here for the reports.
The three-year deal will see the EU working with both countries to encourage European companies to bid in competitive tenders and invest in projects for the exploration and production of natural gas in Israel and in Egypt. There will also be cooperation on infrastructure projects, including looking at the need to build and develop new LNG plants. In addition, the EU and Egypt will develop a Mediterranean Hydrogen Partnership to promote investments in renewable electricity generation. This will include strengthening and extending electricity grids, including trans-Mediterranean interconnectors, the production of renewables and low carbon hydrogen and the construction of storage, transport and distribution infrastructure.
Egypt, which relies on Ukraine and Russia for 80% of its grain supplies, is facing food shortages. The EU has provided US$106 million in immediate relief to increase food security and, over the coming years, has committed to investing almost US$3.2 billion into boosting the country's local food production, specifically in the areas of agriculture, nutrition, water and sanitation programmes.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
