East Med Gas Development: Pipeline Politics Drive Floating Solutions

The East Mediterranean will likely see MENA’s first use of floating LNG and CNG technology. Though the economics are compelling, the lack of diplomatic relations between Israel and Lebanon, and Turkey and Cyprus means regional geopolitics will be the deciding factor.

US firm Noble Energy sees Turkey as the key anchor customer for Phase-2 development of its giant 22 tcf Leviathan discovery offshore Israel.

Given the distance involved – 400 km – a pipeline would be the normal economic option. However any direct route would cross the exclusive economic zone (EEZ) of both Lebanon and Syria. Neither country has, or is likely to have in the foreseeable future, diplomatic relations with Israel. The longer alternate route would be through Cypriot waters (see box, p7).


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