East Med Gas Development: Hang Together Or Hang Separately

Sustained low gas prices, on top of complicated politics, mean international tie-ups are the last best hope of fully monetizing actual and potential Cypriot and Israeli deepwater gas finds.

Politics has been a key stumbling block to fully monetizing gas discovered in the East Mediterranean deepwater. With the exception of Egypt’s 24 tcf Zohr, which has a hungry domestic market to sate, and Israel’s 10 tcf Tamar, which alone meets 55% of that country’s power demand, other finds – such as Cyprus’ 2011 5 tcf Aphrodite – have struggled to get anywhere near development. The jury remains very much out on whether this year’s sanctioning of even a scaled-back Phase-1 of Israel’s 21 tcf Leviathan was a wise move, given the near-total absence of sales deals. Certainly realizing the field’s full potential requires tapping export markets.


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