With Giant Gas Find, Israel is Poised for New Era

[Valin]

Via Meadia:

11/7/13

 

The Tamar deepwater natural gas drilling platform off the coast of Ashdod is helping to usher in a new era for Israel. The Tamar field, and a larger one to the west, are soon going to make Israel a major natural gas exporter, the * FT reports today, potentially bringing in a $60 billion over the next two decades.

 

A court decision late last month unblocked the path to exporting much of the gas from these two fields.

 

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Not only does this have major geopolitical consequences for the Middle East, it will also reduce Israels dependence on the US and limit US ability to pressure Jerusalem on the peace process, something that the Israeli right has already no doubt considered. Already that peace process is looking rocky. Israel and Palestinian negotiators clashed bitterly during talks today, the NYT reports. So far, unfortunately, it doesnt look like the Obama administrations second effort to ameliorate that relationship will turn out any better than the first.

 

* Behind Paywall

[Valin]

Via Meadia: Is Cyprus Wooing Israel?

11/8/13

 

Theres been no shortage of news this week about energy developments in the eastern Mediterranean. But while Israel still mulls over its decision of where to pipe or ship its new bounty of natural gas, the nearby island of Cyprus is moving forward with a plan to build a liquified natural gas (LNG) export terminal. The facility would liquify Cypruss own reserves of offshore natural gasbelieved to range somewhere between 3.6 and 6 trillion cubic feetto be exported via ship. Its a big, albeit tentative, step for the tiny island nation, but it may factor in to Israels decision. The NYT reports:

 

 

[Cyprus's gas reserves] may not be enough to supply an L.N.G. facility by [themselves], analysts say. The industry rule of thumb is that a single-unit L.N.G. facility, which chills the gas to a liquid, requires about six trillion cubic feet of gas to make the plant economically viable. [...]

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This regions new resource bounty is shaking up the energy world and geopolitics alike. Well be watching.