Egypt Snubs LNG, Plans To Send Gas to Lebanon Via the Arab Gas Pipeline - JOURNAL OF PETROLEUM TECHNOLOGY

September 23, 2021

Pat Davis Szymczak

Egypt says it is stopping gas supplies to the Egypt Liquefied Natural Gas (ELNG) export terminal at Idku near Alexandria immediately and that it will supply gas to the Damietta LNG plant only until year end as it prepares to redirect surplus gas exports to Lebanon via the Arab Gas Pipeline.

Jordan’s Ministry of Energy and Mineral Resources announced in early September it would deliver Egyptian gas to Lebanon after oil ministers of nations responsible for the Arab Gas Pipeline (Egypt, Jordan, Syria, and Lebanon) met in Amman to agree on a regional response to Lebanon’s ongoing fuel and electricity crisis, local media reported.

The English language news site Egypttoday.com quoted Egyptian Minister Tarek El Molla as saying, “Egypt is working to speed up coordination for delivering Egyptian natural gas to Lebanon through Jordan and Syria.”

Lebanon is in a state of economic collapse that the World Bank has called one of the worst on record, and, because it lacks foreign currency to pay for energy imports, the country was forced to switch off its two main power plants in July for lack of fuel, plunging the country into a near total blackout.

Gas sector a catalyst for further cooperation between Lebanon and Egypt - EXECUTIVE MAGAZINE

Nada Boustani, Lebanon's Energy Minister

August 7, 2019

Mona Sukkarieh

The first six months of 2019 saw an unusual series of meetings between Lebanese and Egyptian officials, with energy cooperation at the core of these discussions. If memory serves well, the frequency is unprecedented.

The option of resuming gas imports from Egypt was discussed extensively, especially during the first meetings of 2019. Lebanon previously imported natural gas from Egypt in 2010 via the Arab Gas Pipeline (AGP) to generate electricity. But supplies were interrupted after a few months with various reasons touted (such as Egypt’s inability to pursue exports because production was barely enough to meet local demand, instability in Egypt, and attacks against the pipeline). With the formation of a new government on January 31, Lebanese officials explored the possibility of quickly resuming imports as they scrambled to find solutions to the problems plaguing the electricity sector. The dire state of Lebanon’s power sector and the burden it places on the economy propelled it to the forefront of the government’s reform agenda. Government officials examined the option of importing gas by pipeline from Egypt to generate electricity—in addition to the possibility of buying electricity from Jordan in exchange for water—as among the possible solutions that they thought could be implemented quickly.

Superpowers Are Vying For Power In This New Oil & Gas Frontier - OIL PRICE

Aug 29, 2019, 3:00 PM CDT

Vanand Meliksetian

The Eastern Mediterranean has become a hotbed for tensions between regional and great powers due to the discovery of major energy deposits. The littoral states could potentially earn billions in gas exports while at the same time ensuring a level of energy security, which is rare to the region. However, the on-going activities create a level of complexity, which is an opportunity for countries such as the U.S. and Russia to exert influence.

Secretary of State Mike Pompeo has warned of "revisionist powers like Iran, Russia, and China trying to take major footholds in the East and West." The U.S. wishes to create an alliance of countries connected through multilateral interdependence. The backbone of the coalition is to be formed by Greece, Cyprus, and Israel.

The most critical driver for Washington’s assertiveness is Russia’s resurgence as a major force which can project power in the wider region. Moscow's relatively successful policy in the Middle East and its presence in the Eastern Mediterranean through its military intervention in Syria are making the U.S. wary of Russian influence.

Eastern Med countries agree to move ahead with gas forum - THE ARAB WEEKLY

Saturday 27/JULY/2019

CAIRO - Energy ministers from the founding countries of the Eastern Mediterranean Gas Forum agreed to complete the basic structure of the group and enhance cooperation to promote the exploitation of natural gas reserves in the region.

During a meeting July 25 in Cairo, energy ministers of Egypt, Cyprus, Greece, Israel, Italy, the Palestinian territories and a representative of the energy minister of Jordan said they would form a committee to elevate the forum to the level of an international organisation that respects the rights of its members to their natural resources.

The meeting of the Eastern Mediterranean Gas Forum (EMGF) founders was almost six months after the forum was declared. EMGF is a new player on the international natural gas scene, deriving its force from numerous gas finds in the region in recent years.

The forum is an expression of the changing face of the region, in which political and military rivalries and animosities are overshadowed by economic interests, even as some regional countries, including Turkey, Lebanon and Syria, are yet to join.

Russia Could Mediate Determination Of Lebanese, Syrian Maritime Borders -Lebanese Minister - URDU POINT / SPUTNIK NEWS

Sat 15th June 2019 | 02:16 PM

BEIRUT (UrduPoint News / Sputnik - 15th June, 2019) Lebanon is aware of Syria's desire to determine maritime borders and Russia can mediate in this process, Lebanese Defense Minister Elias Bou Saab told Sputnik.

"We have the information that Syria wants to determine the maritime borders with Lebanon. Russia is located in this region and specifically on these borders. And it has its own economic interests in this," Bou Saab said.

The defense minister recalled that Russia's Novatek company had won a contract along with other energy companies to develop and extract oil and gas in the territorial waters of Lebanon, adding that this company had also a share in the blocks located in the territorial waters of Syria.

"Given these facts, this company has an interest in delimitation of maritime borders, and thus Russia can play a positive role in this process," Bou Saab added.

Eastern Mediterranean Gas Forum a powerful new global player - THE ARAB WEEKLY

EU Commissioner for Energy Miguel Arias Canete (C) visits the Zohr
gas field facilities in April 2018

Sunday 20/01/2019

Amr Emam

The EMGF creates a “systematic dialogue” between producers and consumers on gas policies.

CAIRO - A planned Eastern Mediterranean Gas Forum is expected to expand cooperation between natural gas producers and consumers in the region, creating a powerful global energy player and potentially providing Europe with an alternative supply of gas.

“This is particularly true with major producers in the region agreeing to join hands in maximising benefits from new finds,” said oil and gas expert Ramadan Abul Ela. “Regional discoveries will change the international map of energy supply but this will materialise only when producers join hands.”

The Eastern Mediterranean Gas Forum (EMGF) was announced January 14 in Cairo at a meeting of energy ministers from Egypt, Cyprus, Greece, Israel, Italy, Jordan and the Palestinian territories.

The forum, with headquarters in Cairo, is planned to ease exploitation of Eastern Mediterranean gas reserves to further economic development in the region.

“The forum will support producing countries by enhancing their cooperation with consumer and transitory parties in the region,” a statement from Egypt’s Ministry of Petroleum said. “It will take advantage of existing infrastructure and develop further infrastructure options to accommodate current and future discoveries.”

Mediterranean Gas Bounty Suddenly Seems Within Big Oil’s Reach - THE WALL STREET JOURNAL

March 13, 2018 5:23 p.m. ET
Rory Jones in Tel Aviv,Sarah Kent in London and Bradley Olson in Houston

Activity follows years of work by U.S. diplomats to harmonize economies of once-hostile nations such as Israel, Egypt and Jordan

Big oil companies are pushing into Mediterranean waters off Israel, Lebanon and Egypt after years of U.S. diplomacy helped break open a political logjam around giant Middle Eastern natural-gas discoveries.

Exxon Mobil Corp. XOM -0.94% , Royal Dutch Shell RDS.B -0.81% PLC,Total SA TOT 0.33% of France and others are planning to invest in exports and exploration in the Eastern Mediterranean. Their prospects were buoyed by a landmark contract last month between U.S., Israeli and Egyptian firms that breathed new life into the regional market.

Shell is in talks with investors in natural-gas fields off Israel and Cyprus to supply its Egyptian liquefaction facility, according to people familiar with the matter. If the deal advances, it would allow Israel to quickly export some of the extensive reserves of natural gas found in the Mediterranean Sea west of Haifa.

Italy’s Eni E 0.59% SpA and Total last month announced a new discovery off Cyprus. The two oil giants are also working together to explore in disputed waters off Lebanon. Exxon, too, is set to explore nearby.

DEBATE: What Is the Best Way to Transport Levantine Gas to Europe? - BESA CENTER

February 22, 2018Dr. George N. Tzogopoulos

BESA Center Online Debate No. 7, February 22, 2018

Q: Energy discoveries in the Eastern Mediterranean are changing regional dynamics in the Basin. Key players – principally Cyprus, Egypt, and Israel – are taking steps to achieve energy independence and are exploring opportunities for exports. The EU, which is interested in reducing its energy dependency on Russia, could be a client in the future. BESA joins the debate by asking: How can natural gas from the Eastern Mediterranean be better transported to Europe?

Respondents: Michael Ratner, Gallia Lindenstrauss, Tim Boersma, Defne Sadıklar-Arslan, Marc-Antoine Eyl-Mazzega, Theodore Tsakiris, Sohbet Karbuz

Turkey’s Syria campaign unlikely to affect regional energy projects - NEW EUROPE

JANUARY 29, 2018, 10:44
Kostis Geropoulos

East Med gas pipeline from Cyprus to Greece and onto Europe bypassing Turkey has the less political risk, leading regional expert says

ATHENS – As Turkey moves forward with ‘Operation Olive Branch’ with President Recep Tayyip Erdogan reportedly saying that Ankara is prepared to take its fight against Kurdish forces in northern Syria as far as Iraq, a leading regional analyst told New Europe that the latest military campaign is not likely to have any direct effect on energy projects.

Asked if that military operation would have any effect on long-term projects like the Trans Anatolian Pipeline (TANAP) and the Trans Adriatic Pipeline (TAP), Saleh Jallad of the Consolidated Contractors Company and publisher of the Middle East Economic Survey “MEES” said, “No, these are a little bit in a way independent. TAP, for instance, it has to do with influence but indirect ways, not direct with Turkey. So it will continue to go and it’s a good project, in my opinion, because it could supply Europe… and Greece will also benefit from this project”.

Jallad stressed that Turkey also wants to diversify its energy resources because the majority of its imports are from Russia.

Israel's role in Turkey's gas hub - PETROLEUM ECONOMIST

London/Tel Aviv, 1 August 2017
Gina Cohen, Aura Sabadus

Turkey needs more gas and wants to diversify the sources. LNG and a pipeline from Israel are the answer

A recurring theme in Turkish political discourse has been an ambition to establish an energy hub to capitalise on the country's strategic location linking resource-rich countries to its east with European markets to its west. Israeli gas and new flexible supplies of liquefied natural gas can help Turkey deliver on the aim.

So far, Turkey's strategy has lacked clarity and the objective has been open to multiple interpretations, each reflecting the country's tortuous relations with its neighbours and the poor level of market liberalisation and regulatory reform that would be needed to create a viable gas hub.

Russia Pressures Trade and Energy Routes in Eastern Mediterranean - CHARGED AFFAIRS

USS Mount Whitney and Russian Navy ship (EUCOM, © 2015)

26 JUNE 2017
KEVIN TRUITTE

The Eastern Mediterranean Sea is a major strategic point of connection for international shipping and commerce. In recent years, this has drawn the attention of the Russian Federation, which seeks to reassert itself into the strategically important region. Russian military forces in Syria now provide a means to invoke a threat of military force against vital regional economic lifelines and energy resources. Alongside its military, the country has developed its political and economic influences across the region, increasing its non-military leverage over international maritime trade routes and energy flows. As I have previously argued in Charged Affairs, Russia has escalated its military and political presence and the Eastern Mediterranean is part of its strategy to increase its power over the region, a stepping stone on the country’s path to reestablish itself as a global superpower.

Troubled waters - EXECUTIVE MAGAZINE

May 15, 2017

Matt Nash

From a technical standpoint, the East Mediterranean is a challenge because the seabed is generally more than one thousand meters below the surface. Ultra-deep water, in industry parlance. From a geopolitical standpoint, the complexity is arguably even greater.

Many problems among a variety of neighbors

Production of East Med gas began in Egypt in the late 1960s. Activity remained localized for over thirty years until discoveries were made off Israel and the Gaza Strip in 1999 and 2000. For political reasons, the relatively small Gaza find remains undeveloped, while exploration continued apace offshore Israel, resulting in discoveries – namely Tamar in 2009 and Leviathan in 2010 (see map below) – that have helped spark intense interest in the so-called Levantine Basin, a subsea structure shared by Lebanon, Israel, the Palestinian Authority, Syria, Cyprus, and Turkey, at least from Turkey’s perspective. In 2012, Cyprus was elated by news of the Aphrodite discovery, but for all the gas Israel and Cyprus have found, not a molecule has yet been exported. In fact, most of the gas (including everything in Tamar, Leviathan and Aphrodite) remains buried for lack of a clear means to move it out of the region, among other reasons.

Rosneft takes key step in push into Middle East - FINANCIAL TIMES

APRIL 3, 2017
Henry Foy in Moscow and David Sheppard in Lausanne; Add'l reporting by Anjli Raval

Russian oil group to expand trading after trumpeting agreements in Egypt and Libya

Russia’s Rosneft will this week take custody of its first independently sourced cargo of Kurdish crude oil from Turkey’s port of Ceyhan, a key step in its strategic push into Middle East energy markets and its attempts to expand trading.

The world’s largest listed oil company by output has spent the past four months trumpeting agreements to buy oil from Egypt, Libya and Iraqi Kurdistan, drilling exploration wells in southern Iraq and considering opportunities in Lebanon, as it chases deals to fuel its fledgling international expansion.

Cyprus should develop its small gas fields - CYPRUS MAIL

The Karadeniz powership,Fatmagul Sultan, one of two providing
electricity to Lebanon

March 26, 2017

Abboud Zahr

The Council of Ministers recently approved the selection of winners in the third oil and gas round, which comprises Blocks 6, 8 and 10 in Cyprus’ exclusive economic zone (EEZ). Development of the blocks could determine the future of Cyprus’ hydrocarbons development programme.

US energy giant ExxonMobil and Qatar Petroleum filed the winning bid for Block 10, and the joint-venture of ENI and Total won Block 6. ENI also won Block 8 on its own.

Cyprus announced its third oil and gas round a year ago, after the discovery of Zohr, a giant gas field off the coast of Egypt with gas reserves of 30 trillion cubic feet (tcf), the largest ever natural gas find in the Mediterranean. The companies are hoping to find fields of a similar – or larger – size in Cyprus’ EEZ.

Israel Navy gearing up for its latest mission – protecting Mediterranean gas rigs - HAARETZ

March 09, 2017
Gili Cohen 

It will take two and half years for custom-designed missile boats being built in Germany to arrive. Until then, the navy is not resting on its laurels regarding this strategic economic asset.

For the sailors serving on the Israel Navy’s missile corvettes, the latest revelations concerning the bid for purchasing drilling rig-protecting boats, associated with the procurement of new submarines, have brought about a surprising turn of events. The combat mission of these seamen, which usually remains secretive and submerged, has become an open topic of conversation.

US-Israel-Greece poised for annual maritime drill in Eastern Mediterranean - DEFENSE NEWS

The Hellenic Navy Psara, F-454, front, sails past the Israeli Navy
Keshet, Saar 4.5, while transiting the Mediterranean Sea as seen from
the bridge wing of the U.S. destroyer Porter during Exercise Noble
Dina on April 4, 2016. Photo Credit, MC3 Robert S. Price/US Navy

March 7, 2017
Barbara Opall-Rome

ISRAELI NAVY HEADQUARTERS, Haifa – The trilateral Noble Dina exercise between the American, Israeli and Hellenic navies will begin later this month, with nearly a dozen surface ships, submarines and related air assets scheduled to engage in joint reconnaissance, counterterror and antisubmarine warfare training.

Cyprus will participate as an observer in the annual three-way drill, which begins in Greece and will conclude in mid-April here at the Israeli Navy headquarters in Haifa, said Commander Assaf Boneh, the head of international cooperation for the Israeli sea service.

“It’s one of our most important exercises that allows us to hone our proficiencies in very complex scenarios,” Boneh told Defense News. “We’ll be training in a vast area from Greece to Israel, and this gives us a lot of room to practice multiple scenarios that require jointness.”

Lebanon and Syria: Stuck between a rock and a hard place on natural gas - MODERN DIPLOMACY

JAN 12, 2017Antonia Dimou

The East Mediterranean’s gas resources can promote cooperation, resolve conflicts and turn the region into an energy hub presenting new prospects for Lebanon and Syria.

Lebanon is currently in need to diversify its energy mix away from oil in order to strengthen its security of supply but lags behind neighboring Israel and Cyprus in developing its gas reserves in the East Mediterranean. 3D seismic surveys carried out by the Norwegian Spectrum company have estimated recoverable Lebanese offshore gas reserves at 25.4 trillion cubic feet. The development of Lebanon’s hydrocarbon resources nevertheless faces significant challenges at political and economic levels, namely the skyrocketing public debt, an unstable regulatory framework, and a weak administration attributable to the sectarian nature of the country’s political system.

Oil Majors Prepare For Mega Tender In Lebanese Levant Basin - OIL PRICE

Jan 09, 2017, 3:14 PM CST

Zainab Calcuttawala

After a four-year wait, the Lebanese cabinet has approved two oil and gas decrees on energy tax provisions and blocking last week – allowing offshore drilling ventures in 96 trillion cubic feet of natural gas reserves to begin brewing.

A massive licensing round, stalled in 2013 due to a lack of national unity on energy explorations issues, is set to begin in the country in the next few weeks, with the deadline for submitting bids set for mid-2017.

“Blocks will be opened according to the study carried out by the Petroleum Administration Committee (PAC), as well as according to the requirements of the Lebanese state,” Cezar Abi Khalil, the country’s Minister of Energy and Water Resources told the NNA, describing the new body that will delve into the extraction issues of national offshore production.

Egypt denies rift with Saudi, drift toward Iran - REUTERS

Sat Dec 10, 2016 | 4:32am EST
Reporting By William Maclean; Writing by Noah Browning; Editing by Louise Heavens

Egypt's Foreign Minister Sameh Shukri on Saturday hailed a "special relationship" with Saudi Arabia, denying reports that the two powerful Arab nations had fallen out after Egypt expressed support for the Russian intervention in Syria.

Egypt voted in favor of a Russian-backed U.N. resolution on Syria in October that excluded calls to stop bombing Aleppo, which Saudi Arabia strongly opposed.

The kingdom informed Egypt last month that shipments of oil products expected under a $23 billion aid deal had been halted indefinitely, but Shukri denied the nations were at loggerheads and said any disagreements had been exaggerated.

The last word has not been said in Cyprus - HURRIYET DAILY NEWS

December/09/2016
Fikret Bila

The Cyprus issue is not independent of the Syrian issue. But while the imperialist intervention that has dragged Syria and Iraq into civil war and divided both still continues, the Cyprus talks have accelerated.

After Syria was partitioned and its north was left to the PKK-PYD, and after a corridor was opened to the Mediterranean, the strategic significance of Cyprus’ Karpasia Peninsula multiplied from Ankara’s perspective.

At a time when the EU doors have been firmly closed to Turkey and when Syria is about to be partitioned, the situation of the (self-delcared, recognized only by Turkey) "Turkish Republic of Northern Cyprus (TRNC)" is of strategic importance. In such a process, it would not be wise to say “yes” to a model in which the Turkish Cypriots give away the Karpasia Peninsula. If it did so, Turkey would never be able to protect its rights or its future in the East Mediterranean.