Israel bets on key Karish gas field to access European market
Israel and Lebanon on Thursday concluded a long-awaited deal to delimit their maritime borders, as Israel this week activated the key Karish gas field unlocked by the agreement.
The offshore field is crucial to Israel's ambitions to tap into European markets, and on Wednesday London-listed firm Energean said it had already begun producing gas from Karish ahead of the signing of the U.S.-brokered deal.
Israeli Prime Minister Yair Lapid had hailed production from the field, saying it "bolsters Israel's energy security, enhances our stature as energy exporters".
Gas produced from Karish will not only ensure supplies to Israel's domestic market, it will feed into those from the Tamar and Leviathan fields, both connected to liquefaction plants in Egypt that then supply global markets.
As Europe turns to gas producers worldwide to diversify its sources following sanctions on Russia due to its Ukraine war, Israel has sought to position itself to fill the neighboring continent's growing energy needs.
"We are going to be part of the effort to replace Russian gas in Europe," Lapid said last month during a visit to Germany, adding that the country aims to provide 10 percent of what Moscow was delivering before the invasion.
- Replacing Russian gas -
In 2021, Moscow supplied about 155 billion cubic metres of gas to the European Union.
Israel already delivers gas to its neighbors Egypt and Jordan, and in June signed a deal to liquefy gas using Egyptian infrastructure with a view to delivering it to Europe via shipments.
The Tamar and Leviathan offshore fields already produce about 23 billion cubic meters of gas annually.
But with domestic consumption amounting to 13 billion cubic meters, and its deals with Egypt and Jordan already supplying 9.5 billion more, this has left little room for exports to Europe, energy specialist Gina Cohen told AFP.
"To sell more gas to Europe, there must be stable production from the Karish field," which is expected to have a short-term capacity of 6.5 billion cubic meters annually, she continued.
But to establish itself as a major gas player, Israel still needs to expand its pipelines to Egypt and increase production from Tamar and Leviathan.
It also must seek alternatives to Egypt's finite liquefaction facilities, such as direct pipelines via Greece or Turkey, experts say.
- Qana and Gaza -
Thursday's deal establishes Israel's rights to exploit Karish, while Lebanon has been granted full rights to operate and explore the Qana or Sidon reservoir.
Israel will however be entitled to 17 percent of the proceeds from the reservoir, parts of which fall in Israel's territorial waters, Lapid has said.
A 2012 seismic study of a limited offshore area, by the British firm Spectrum, estimated recoverable gas reserves in Lebanon at 720 billion cubic meters.
Lebanese officials have announced higher estimates, though there are still no proven gas reserves in the Qana reservoir.
Earlier this month, Lebanon's caretaker premier Najib Mikati asked French energy giant TotalEnergies to kickstart gas exploration off its shores.
TotalEnergies is part of a consortium of energy giants awarded a license to explore for gas in two of Lebanon's 10 blocks.
But Lebanon still has a way to go before it has a viable plan to market its energy supplies abroad.
In the meantime, the Palestinians as well have sought to bank on their own gas reserves, which would offer much-needed relief to the beleaguered economy in the territories.
The Palestinian Authority has been in talks with Egypt and Israel to exploit Gaza's offshore fields, which are estimated to hold about 28 billion cubic meters.
Source: Agence France Presse
| Copyright © 2012 Naharnet.com. All Rights Reserved. | https://naharnet.com/stories/en/293316 |